The central government is working on putting together an independent regulator to oversee e-gaming services, permitting only registered entities to operate in India.
According to an ET report, the National Law University (NLU) Delhi, in collaboration with the E-Gaming Federation (EGF), is engaging with industry stakeholders to shape future gaming regulations.
This initiative follows the Ministry of Electronics and Information Technology’s (MeitY) decision to forego self-regulatory organizations for online gaming in January.
NLU is expected to present its recommendations to MeitY post-Lok Sabha elections.
“While regulations are required for better functioning of the industry, a balance between growth and regulation should be maintained, which can only be ensured through a collaborative consultation process between the industry, other stakeholders, and regulators, and comprehensive research about the issues that could require regulation,” ET quoted NLU assistant professor Raghav Pandey.
As per Lumikai’s latest report, the Indian gaming industry touched a $3.1 billion in the fiscal year 2023 and is projected to reach $7.5 billion by the fiscal year 2028.
However, a cloud of uncertainty looms as recent taxation policies threaten to apply brakes to this growth, with heavy tax liabilities and industry consolidation expected to slow down RMG’s upward trajectory.
MSME businesses in the gaming sector are reeling under the burden of 28 percent goods and services tax (GST) with some companies being compelled to downsize while others are shutting shop.
On the other end of the spectrum, larger players are grappling with losses by implementing as much as 50 percent reductions in marketing expenditures.