Separate 'Video Games' From 'Real Money Games': 70 Indian Video Game Companies Call For Clear Policy Distinction & Comprehensive Reforms In Letter To PMO

From regulatory streamlining to avoiding premature regulations, the letter from the industry represents concerns from across the sector.

The Indian video game sector is urging the government to create distinct policies for video games and real money games. Seventy companies from the video games and esports industry have submitted a representation letter to the Prime Minister's Office and the Minister of Information and Broadcasting, requesting the separation of these categories to promote fair and equitable regulations.

"The Indian Video Game Industry (made up of purely entertainment-oriented digital games that do not have an element of monetary staking) will be worth $942 million in 2024. It is projected to reach $1.6 billion by 2029, surpassing the cumulative revenues of all Indian film industries and becoming the largest entertainment industry in India before the end of this decade,” says Harish Chengaiah, founder and CEO of Outlier Games and the organiser of this representation.

Chengaiah added, “We urge the government to take a measured and nuanced approach to video games as they have definite potential to spearhead India’s creative economy and soft power aspirations. Despite several requests to be involved in policy discussions, we were never given an audience. We hope at least now we get invited to deliberate on the unique circumstances of video games that are far different from real money games.”

What Are The Recommendations?

In a letter seen by ABP Live, the industry has outlined several recommendations aimed at accelerating growth and contributing to India's economic and cultural goals.

Key suggestions include:

• Policy Distinction: Separate "video games" from "real money games" for clearer regulations.


• Media Representation: Restrict media from using video game images when discussing real money games.


• Regulatory Streamlining: Appoint the I&B Ministry as the nodal agency for video games, establish an AVGC-XR wing, and designate a nodal officer.


• Avoid Premature Regulations: Avoid imposing regulations too early on the video game industry.


• Support for Original IP: Encourage and support the creation and ownership of original intellectual property.


• Skill Development: Enhance vocational training and support for game development education.


• Educational Reforms: Create standards and frameworks for higher education in game development and esports.


• Market Access: Provide financial assistance for Indian delegations at international video gaming events.


• Easing Import Duties: Rationalise import duties and simplify customs processes for development hardware.


• Tax Incentives: Reduce the GST rate for video games from 18 per cent to 12 per cent.

The letter, signed by notable Indian game developers such as Nodding Heads Games (Raji: An Ancient Epic), Dot9 Games (FAU-G: Domination), and SuperGaming (Indus Battle Royale), underscores the industry's united front in seeking policy reforms.