A Lumikai report suggests that the Indian online gaming industry’s revenue is set to take a hit after the imposition of 28 pc GST on real money gaming. The projected revenue has been slashed to $7.5 billion for the fiscal year 2028 (from $8.6 billion for FY27).
According to media reports, MoS (IT) Rajeev Chandrasekhar’s position is that the government does not want self-regulatory bodies governing real money gaming. It does not want the sector to be ‘industry dominated’, driven by major gaming companies.
These two were among issues that cropped up when we asked a few industry practitioners about their expectations from the Union Budget, which is around the corner.
Lokesh Suji, Director, Esports Federation of India & Vice President of the Asian Esports Federation, said, “In the past year, the government has showcased consistent support for the country’s Esports industry, laying a strong foundation for the sector’s growth. We expect this trend to continue this year and remain optimistic about the upcoming budget. For establishing the infrastructure necessary for the industry’s development and to nurture an Esports ecosystem that positions India as a global Esports hub, we hope to see a dedicated allocation of funds for the Esports sector. Additionally, we eagerly anticipate the introduction of incentives for Indian video game development studios that will not only encourage innovation but also enable homegrown titles to prosper within the community.
To ensure the long-term success of our Esports athletes and attract more aspiring players to pursue careers in Esports, we also hope for tax relief for athletes on winnings from Esports tournaments. ESFI will remain committed to working closely with the government to further elevate the status of Esports in the country.”
Rohit Agarwal, Founder & Director, Alpha Zegus, noted, “From budget 2024, one of the major steps I look forward to is more ‘Esports’ based activities moving to the 18 pc slab (from the 28 pc slab). Apart from this, I’m also looking forward to the government encouraging more state governments to assign budgets for the growth and promotion of Esports (similar to Bihar). Lastly, more regulations in terms of in-game and tournament winnings are expected to come in.”
Roland Landers, CEO, All India Gaming Federation, believes that the Union Budget is an opportunity to fuel the trajectory of India’s online gaming ecosystem. He stated, “There have been significant regulatory strides in the online gaming sector, and we anticipate progressive allocations to be made towards the sector in the upcoming union budget, including towards the implementation of IT rules for online games and the establishment of self-regulatory bodies. Additionally, we look forward to budgetary allocations aligned with the AVGC policies, in line with the recommendations of the AVGC Task Force’s report from the Ministry of Information and Broadcasting. Given the highly positive outlook for this industry, there is much for the gaming sector to anticipate. We envision this budget to be a symphony of support, by aligning regulatory clarity with fiscal incentives and strengthening legal infrastructure to encourage growth. With the right notes, the online gaming industry can be a cornerstone of Digital India and serving as a catalyst for the governments’ vision of Amrit Kaal – a five trillion-dollar economy.”
Ankur Singh, Founder & CEO, Witzeal Technologies, said, “We eagerly await the upcoming budget, particularly with regards to finding a resolution of ongoing concerns related to taxation to create a predictable and attractive business environment. Apart from that, having an investment in programs and initiatives to nurture skilled professionals and build a robust gaming workforce will go a long way in boosting the growth prospects of the entire industry and especially startups like us. Also we urge the government to look into advancements aligned with the AVGC policies, as recommended by the Task Force, to boost the entire AVGC ecosystem.
“Lastly, we encourage the government to consider incentivising responsible gaming practices within the industry. Promoting responsible gaming technology and consumer education initiatives through tax benefits would strengthen the sector’s commitment to player safety and ethical conduct.”
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