Game On: 17th Edition

Game On: 17th Edition

We bring you updates from the world of Indian digital gaming in our 17th edition of Game On!

In the month of September, the the Union Cabinet approved the establishment of the National Centre of Excellence (NCoE) for AVGC marking a monumental step to elevate India as a global leader in digital content creation. The establishment of the NCoE underscores the government’s recognition of this industry’s transformative potential. It will serve as a dynamic hub where education, technology, and creative innovation intersect. AI, machine learning, and automation will empower content creators, driving a new era of data-powered storytelling and immersive experiences.

At the All India Gaming Federation (AIGF) | All India Game Developers' Forum (AIGDF) , we continue to contribute to this transformative movement. The government’s strong backing, paired with collaborations with industry giants like Confederation of Indian Industry and FICCI , will fuel India’s creative leap and showcase our immense potential to the world.

The All India Game Developers' Forum (AIGDF) is advocating for specific exemptions for free-to-play (F2P) gaming companies under the Digital Personal Data Protection (DPDP) Act. This request stems from concerns that stringent compliance burdens could threaten the sustainability of F2P business models. The entire report can be accessed here: https://lnkd.in/dM8fnzav

As always, we enjoy hearing from our readers. Share your comments or raise a query on online gaming in India at [email protected] .

Game on!

Roland Landers


Landmark ‘Roy Framework’ for determining ‘games of skill’ launched

Earlier this month, The Dialogue published the ‘Roy Framework’, which marks a major milestone for the online skill gaming industry. The pioneering framework sets the stage for classifying online games using a scientific, data-driven approach.?

  • The framework has been authored by Padma Shri Dr. Bimal Roy, former Chairman of the National Statistical Commission and former Director of the Indian Statistical Institute, in collaboration with Kriti Singh and Kazim Rizvi from The Dialogue.
  • It is India’s first objective method to ensure fairness and transparency for all stakeholders—players, developers, and regulators alike. Supported by advanced statistical tools such as the Chi-Square Test and Pearson Correlation Test, the framework addresses a long-standing regulatory challenge in the country’s booming online gaming market. The framework is poised to strengthen regulatory transparency, promote fairness, and protect players.
  • By building on existing legal principles and combining them with cutting edge statistical analysis, this framework brings much needed clarity to the classification of games. It outlines a scientific, quantitative approach to classifying skill based games versus chance based - one of the industry's biggest questions.

We at All India Gaming Federation (AIGF) are proud to have supported the framework by providing real player data from our members for evaluation, and we look forward to providing extensive feedback and socializing the framework across our 150+ members. The Roy Framework is available here .


PM Modi announces setting up of National Centre of Excellence for AVGC

We are excited to share that on 18 September 2024, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved a proposal to set up a National Centre of Excellence (NCoE) for Animation, Visual Effects, Gaming, Comics and Extended Reality (AVGC-XR) on lines of the IITs and IIMs to anchor the animation ecosystem in the country (official announcement ). In a post on X announcing the approval, Prime Minister Narendra Modi stated that the establishment of the NCoE is poised to provide a big boost to creators, including creation of job opportunities. In a series of posts on X, Ashwini Vaishnaw, Union Minister for Information & Broadcasting, Electronics & Information Technology provided the following salient heights of the centre:

Structure:

●? The centre named ‘Indian Institute of Immersive Creatures’ (‘IIIC’) will be an industry-led initiative, in partnership with state and academia;

●? ? ? The IIIC will operate on a hub and spoke model, with the former as the hub and multiple centres as its spoke;

●? ? ? The government will also institute a dedicated innovation and research fund to promote start-up ecosystem;

Focus:

●? ? ? The NCoE will provide infrastructure for creation of immersive technologies including Virtual Reality (VR), Augmented Reality (AR), Mixed Reality (MR) and 3D modelling & animation, which are instrumental in game development;

●? ? ? The centre will promote creation of indigenous intellectual property based on India’s cultural heritage;

●? ? ? The centre is expected to generate 5,00,000 jobs.

The NCoE is poised to be a significant pillar for the development of Indian gaming titles, and cultivation of local talent.

AIGDF seeks exemption for F2P companies from age-gating under the DPDP Act

In our previous edition, we had written about the All India Game Developers' Forum (AIGDF) and the Indian Governance and Policy Project (IGAP) ’s report titled “Anticipated Impact of the Digital Personal Data Protection Act 2023 on the Online Gaming Sector”. The report examines specific data protection compliance requirements across categories of gaming, along with recommendations on crucial clarifications and potential exemptions for gaming, especially concerning parental consent, the handling of children’s data, and compliance timelines for data processing restrictions. The full report can be accessed here . In a developing story, F2P gaming companies have sought exemption from the applicability of behavioural tracking or targeted advertising obligations for minors under the DPDP Act. The exemption has been sought on the grounds that the compliance burden of taking parental consent, not tracking or behavioural monitoring of children, and targeted advertising under the DPDP Act will affect the business models of F2P gaming companies. Media coverage here .

DGGI chief flags need for concentrated action against offshore online gaming platforms

In a recent interview , Anil Kumar Gupta the outgoing chief of the Directorate General of GST Intelligence (DGGI) highlighted the ongoing issue of Goods and Services Tax (GST) evasion by offshore platforms. Despite new tax laws implemented on October 1, 2023, which introduced a 28% GST on gaming platforms, tax leakage continues from these offshore entities operating from tax havens like Malta, Curacao, and the British Virgin Islands. Such platforms evade taxes by frequently changing URLs, using the dark web, or utilising VPNs, making enforcement difficult.

He further stated that such companies evade billions, with the online gaming sector alone accounting for approximately ?82,000 crore out of the ?2.01 lakh crore in GST evasion detected during FY’24. The DGGI has also issued show cause notices to several domestic online gaming companies, with tax liabilities reaching over ?1.10 lakh crore. Furthermore, the DGGI has taken steps to curb this evasion by recommending the blocking of 167 offshore websites and pushing for international cooperation to improve tax compliance.

Relatedly, as per a report , pay-to-play gaming operators have submitted data of over 540 illegal betting and gambling firms to the DGGI for its action.

Indian government to seek FATF intervention in addressing online gaming nexus with money laundering

As per a report , India is seeking the Financial Action Task Force (FATF) to enhance its scrutiny of the online gaming sector due to concerns over money laundering risks, during FATF’s upcoming meeting in Paris. The move aims to address the growing potential for illicit financial activities, such as money laundering and terrorist financing, facilitated by certain offshore online gaming platforms. Such platforms often operate across jurisdictions, making them harder to regulate and oversee effectively. In this context, FATF's role would be crucial in establishing global standards to counter financial crimes, ensuring that platforms comply with anti-money laundering (AML) and counter-terrorist financing (CFT) protocols. International cooperation through FATF oversight could lead to more robust regulations that prevent illegal financial flows within the industry.

The broader objective is to create a safer online gaming environment by enhancing financial oversight and ensuring that companies adhere to stringent AML guidelines. As the industry grows, balancing innovation and regulation becomes more critical to ensure the sector contributes positively to the economy without enabling illicit activities.

TN gaming authority takes action against social media promotion of online gambling

As per a report , the Tamil Nadu Gaming Authority (TNOGA) has initiated legal proceedings against several influencers on Youtube and Instagram for promoting online betting and gambling. The TNOGA had earlier issued show-cause notices to such individuals and companies, and has now gone before the Metropolitan Magistrate Court, Saidapet on being dissatisfied with the response. If convicted under the Tamil Nadu Online Gaming Act, such persons could face monetary fine between INR five to ten lakhs, and up to three years of imprisonment.

Indian regulatory, tax regime impeding online gaming’s growth

India's online gaming industry, worth $3.1 billion, is being hindered by a restrictive regulatory and tax environment, according to a USISPF-TMT report . The sector faces a 28% GST on all gaming formats, which does not differentiate between games of skill and games of chance—a distinction made in many other countries. Skill-based games generally attract lower taxes globally, focusing on platform fees or gross gaming revenue (GGR). The report suggests that this high taxation stifles innovation and growth, making it hard for Indian companies to compete internationally despite the country's massive gaming audience of over 600 million. India’s digital gaming landscape is burgeoning, with the potential to be a leader in the sector. However, the current tax framework, which treats all gaming forms the same, results in higher financial burdens on companies. This could drive investments and innovation to other countries where the regulatory frameworks are more favourable. The report advocates for a more progressive and clear distinction between skill-based games and games of chance, proposing reforms that align with international standards to fuel growth, attract foreign investments, and enable domestic firms to thrive globally. By encouraging this distinction, which has been adopted in over 12 countries, the report envisions a more sustainable gaming ecosystem in India, where companies can focus on developing new technologies and expanding their user bases without the fear of excessive taxation. The growth of India’s gaming market could contribute significantly to the country’s digital economy, but reforms in the regulatory and tax regimes are crucial for this potential to be realized.

Karnataka to be Asia’s gaming and animation capital by, announces Priyank Kharge

At the Indian Gaming Convention 2024, Karnataka's Minister for IT&BT, Priyank Kharge, emphasized the transformative potential of India’s gaming industry for employment and economic growth with Karnataka as a gaming and animation hub. He pointed out that the gaming market, valued at ?16,500 crore, could reach ?34,000 crore in a few years and create up to 250,000 jobs. Kharge highlighted Karnataka’s positioning as the "innovation and skilling capital," with state initiatives focused on animation, visual effects, and game development. The state aims to become a global gaming hub by leveraging its talent pool and fostering innovation-friendly policies. See coverage here .

A23's founder calls for 'whitelisting' of govt-recognised gaming operators In a recent address , Deepak G. , the founder of A23, advocated for the whitelisting of government-recognized gaming operators. He emphasizes that this move would create a safer environment for users, fostering growth within the gaming industry in India. Gullapalli argues that the current approach, which subjects many gaming operators to regulatory uncertainty, hampers innovation and investment. By establishing a whitelist, the government can streamline regulations, secure the gaming environment, and promote responsible gaming. This proposal aims to help legitimate operators thrive while ensuring that users engage with safe platforms. The call for action reflects a broader industry desire for regulation that balances safety and growth.


Loco Sells Majority Stake to UAE-Based Tech Company:

Loco , a well-known Indian game streaming platform, has sold a majority stake to the UAE-based Techno Group as per reports . This acquisition is significant in the context of the gaming industry, as Loco has indicated that it will now focus on markets outside India, reflecting a strategic shift. The acquisition aims to leverage Techno’s resources to expand Loco’s operations internationally, especially in regions where gaming is rapidly growing.

Nazara Technologies Completes ?150 Crore Investment in Moonshine Tech:

Nazara Technologies has finalized a ?150 crore investment in Moonshine Technologies, which specializes in mobile gaming. This move aims to bolster Nazara's presence in the rapidly growing mobile gaming sector in India. Moonshine is known for its focus on casual and hyper-casual games, which have become increasingly popular among Indian audiences. Read report here

Startup Networking Platform SCOPE Launches $50 Million VC Fund for Fintech and Gaming Startups:

SCOPE has launched a $50 million venture capital fund aimed at supporting startups in the fintech and gaming sectors. SCOPE’s objective is to create a robust ecosystem for startups, encouraging collaboration and networking among entrepreneurs, especially in a country where the fintech and gaming sectors are witnessing significant growth. The fund will focus on early-stage companies, emphasizing the importance of nurturing new ideas and solutions in these fields. Read report here

Winzo Concludes Fourth ESOP Buyback:

?Winzo , an interactive gaming platform, has successfully executed its fourth Employee Stock Ownership Plan (ESOP) buyback. The buy back allows eligible employees, approximately 30% of WinZO’s workforce, comprising team members with at least two years of tenure, to liquidate their vested ESOPs. Previously, WinZO conducted three rounds of ESOP liquidation in 2021 and 2023. The buyback not only reflects the company’s growth trajectory but also serves to motivate employees, align their interests with the company’s success, and strengthen retention strategies in an increasingly competitive market. Read more here

Mayhem Studios Bets on Local Flavour With ‘Underworld Gang Wars’:

Ojas Vipat , CEO of Mayhem Studios , spoke to AFK Gaming on Mayhem Studios' Underworld Gang Wars (UGW), an Indian-themed battle royal. The game aims to challenge the dominance of international titles in India's skyrocketing gaming market by offering a culturally relevant experience. Discussing the game’s development journey, he mentioned prioritizing player feedback from the closed beta and enhancing graphics and performance for low-end devices. Positioned as a cultural and commercial experiment with global ambitions, the game has garnered eight million pre-registrations, reflecting strong interest. The success of UGW is seen as a critical moment for India's gaming ecosystem, potentially setting a new standard for locally developed content. The article also discusses India's potential to develop AAA games, highlighting the need for patience, resources, and community support

Krafton Expands Its Indian Gaming Incubator with Two New Startups:

Krafton , the South Korean gaming giant, has expanded its gaming incubator in India by adding two new startups. This expansion is a part of Krafton’s strategy to support local innovation and enhance its commitment to developing the Indian gaming ecosystem. The incubator is focused on nurturing startups that can contribute to the gaming landscape by providing them with mentorship, resources, and funding opportunities. By investing in local talent, Krafton aims to foster a vibrant community while also tapping into fresh ideas and innovative gaming solutions. Read more here

Zupee Enters Into Strategic Partnership with ONDC to Boost User Acquisition:

Zupee , a leading online gaming platform, has entered a strategic partnership with the Open Network for Digital Commerce (ONDC ). This collaboration aims to enhance Zupee’s user acquisition efforts by leveraging ONDC’s digital infrastructure, promoting individual developers, and encouraging the growth of digital commerce in India. The partnership reflects Zupee’s commitment to increasing its user base and enhancing engagement while also contributing to the broader digital gaming ecosystem in the country. Read more here

Deepika Padukone Joins BGMI as Brand Ambassador:

Bollywood actress Deepika Padukone has been named the brand ambassador for Battlegrounds Mobile India (BGMI). This partnership aims to leverage her star power to enhance the game's market presence and appeal to a broader audience. The article discusses how her involvement may influence players and attract more users to BGMI, especially among fans of Bollywood, thereby boosting the game’s visibility in a competitive market.

Bihar Announces First Ever Inter-School Esports Championship 2024:

The state of Bihar has announced its first-ever Inter-School Esports Championship for 2024. This championship is set to promote competitive gaming among students and will feature various games with a notable prize pool. The initiative aims to encourage young talent in the esports field and integrate gaming into school curricula, highlighting the growing recognition of esports as a legitimate activity. It also sets a precedent for future events across the country that celebrate gaming at the educational level. Read more here

Winzo launches India’s Largest Gaming Talent Mentorship Program:

Winzo has unveiled India’s largest mentorship program for gaming talent, aiming to address the skills gap in the gaming industry. The initiative focuses on turbocharging the gaming ecosystem in India, which has been experiencing tremendous growth but needs skilled professionals to meet industry demands. Winzo’s program stands to increase the talent pool and innovation within the national gaming landscape. This program will connect aspiring game developers, designers, and professionals with experienced mentors from the gaming sector, providing guidance, resources, and networking opportunities. Read more here

Nazara's Nodwin Hits It Out of the Park with Esports, 100 million viewers in its first two seasons:

Nodwin Gaming , a subsidiary of Nazara Technologies, a key player in the Indian esports landscape. It successfully brought esports to television in India, achieving significant viewership for events like the Battlegrounds Mobile India Masters Series (BGMS). It is reported that BGMS reached over 100 million viewers across linear and digital platforms in its first two seasons. Nodwin's journey reflects the increasing popularity and commercialization of esports, illustrating its potential for future growth in the Indian gaming industry.

Supergaming's Indus Battle Royale Surpasses 1 Million Downloads on Release Day:

Supergaming 's new battle royale game, Indus, achieved a significant milestone by surpassing 1 million downloads on its release day. Players participated in a total of 80,349 matches, with 10,50,747 total kills reported . Launched on October 10, 2023, Indus has quickly gained popularity, generating excitement among players in India and beyond. The game features Indian-inspired characters and settings, which resonate with local audiences.

Games24x7 Launches Accelerator Programme for Start-ups in Gaming, AI, and Assistive Tech:

Games24x7 has launched TechXpedite, an accelerator program designed to support early-stage startups in gaming, artificial intelligence (AI), and assistive technology. Running for six months, the program is open to startups from India and other regions. Participants will benefit from mentorship by industry experts, access to Games24x7’s resources, workshops, and potential funding opportunities. The initiative aims to foster a collaborative ecosystem that helps startups scale their operations and drive technological advancements. Link to apply : https://www.games24x7.com/techxpedite

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