Game On: India - 9th Edition

Have a query on online gaming in India? Write to [email protected]

Dear readers,

Hope you had a great start to the new year!

It is fair to say, the previous year was a torrid one for all stakeholders, therefore, we wish 2024 brings stability and prosperity for the Indian gaming community.

In our first edition of 2024, we discuss the status of various petitions filed by gaming stakeholders before the Supreme Court of India, the rising trend of professional Indian gamers, Karnataka state’s accelerated attempts to foster a gaming ecosystem in the state, and the industry’s consolidation of self-regulation to bring stability.

This edition’s MVP is Namratha B Swamy , Chief Operating Officer at Mobile Premier League (MPL) . She discusses her company’s security strategy and the various measures it has taken to ensure player safety.

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

All pending cases challenging 28% GST to be decided in one go by the Supreme Court (SC): On 8 January 2024, a petition filed by the E-Gaming Federation on behalf of the online skill-gaming industry challenging the 28% levy of GST on deposits, was listed before the Supreme Court of India. Notice was issued to the government of India, seeking the government’s reply in the matter. The EGF’s petition was also tagged with previous petitions filed by Gameskraft among others , and will now be taken up together by the bench. Significantly, the bench led by the Chief Justice of India, stressed on the need to settle the controversy before the SC itself to ensure the law is consistent across the country. To this, the counsel representing the government of India and the GST department undertook to file a petition for transfer of all cases pending before the various high courts across India, to enable the controversy to be settled in a single instance.

Karnataka government accelerates its support for Indian gaming companies: The Karnataka government has recently warmed up to online skill-gaming. As the technology hub of India, which houses significant talent and companies, the state has a lot to offer in building a robust gaming ecosystem in India.

• In December 2023, the state government announced launch of an accelerator program along with Games24x7 for startups b building in the gaming space. Called ‘GameTech Accelerate – The Future of Gaming’, the programme will mentor online gaming startups offering ‘innovative and viable’ solutions (see report ).
• The Karnataka state’s minister for Information Technology, Priyank Kharge, also inaugurated the new office of Mayhem Studios , which is building India’s first AAA battle royale game (see report ). The minister emphasised the state’s commitment towards bolstering Indian gaming and highlighting the depth of Indian storytelling.

Government experts endorse games of skill: In an editorial post , Dr. Aruna Sharma , former Secretary, Ministry of Electronics and Information Technology (MeitY), stressed on the importance of balancing effective taxation with the growth of the online gaming industry. She emphasised that the games of skill do not change their nature based on the medium of play, i.e. games of skill remain the same whether played online or offline. The editorial stresses that the application of retrospective taxation on online skill-games will create a negative impact on the industry. Further, it also cautions against the fallout of poor taxation policy, which may inadvertently accelerate growth of grey markets and even push Indian gamers to non-tax paying offshore platforms.

More than 50% gamers see a career in gaming: A recent study, titled ‘HP India Gaming Landscape Study 2023’, has found that almost 52% of gamers consider online gaming a viable career (see report ). It also found that around 40% of serious gamers earned between INR 6 to 12 lakhs per annum in 2023. A significant portion of this income came from sponsorships and e-sports tournaments. The study shows a promising trend in Indian gaming, where an increasing number of individuals are looking at it as a full-time career. The report also showed a positive outlook of parents towards gaming with almost 47% accepting it as a part-time or full-time career.

China’s draft gaming rules cause a significant slide in Chinese gaming stock: Earlier in December 2023, the Chinese government published draft rules for regulation of online games in the country. The draft rules included guidelines that prevent offering of incentives for daily user log-ins and purchases that can be made by a user. The sudden move led stocks of the biggest gaming companies, including Tencent, NetEase and Huya to slide, reportedly wiping off USD 80 billion in market value. In an attempt to control the slide, the Chinese government quickly issued a statement claiming that it had approved 105 new games for publication, including Tencent’s ‘Counter War: Future’ and NetEase’s ‘Firefly Assault’. The sweeping measures are a part of China’s continuing crackdown on big tech. The country had previously introduced measures to limit the time children could spend on gaming apps to three hours a week.

Indian gaming consolidates efforts to self-regulate: The All India Gaming Federation (AIGF), the Federation of Indian Fantasy Sports (FIFS), and the E-Gaming Federation (EGF) have come together to sign a voluntary ‘Code of Ethics for Online Gaming Industries’. The Code among others calls on the online gaming companies to adopt measures including know-your-customer (KYC), manner of determination of winners, platform fee charged, and the utilisation of deposits collected from players (read more here ). The Code is another step in the industry’s efforts of self-regulation through industry bodies. It is expected to bring a standardised approach across gaming categories and provide for a seamless user experience.

MeitY considering direct regulation of online gaming: In a recent interview , the Minister of State (MoS), MeitY, @Rajeev Chandrasekhar, has pointed out the lack of progress in the appointment of self-regulatory bodies (SRBs) for online gaming. The MoS mentioned that the government was open to directly regulating the online gaming sector, however, a final opinion in this regard was yet to be formed. While the formation of SRBs remains in limbo, the industry has continued to self-regulate through industry bodies including the AIGF.

Namratha B. Swamy is the Chief Operating Officer of Mobile Premier League (MPL). As India's gaming industry skyrockets towards an estimated $8.6 billion by FY27, it has also become a lucrative ground for fraudulent activities. How are gaming companies staying ahead of these threats to ensure player safety? We sat down with Namratha to learn more.?

1. On the current gaming and security landscape and the different security threats facing gamers: In recent years, instances of cyber fraud in India have been on the rise, presenting a growing concern for the digital economy. As gaming has become increasingly popular, these fraudulent activities have expanded into this space. Experian, a data analysis and consumer credit rating company, found that 30% of Indian consumers are susceptible to gaming-related fraud. The range of threats is broad, encompassing common issues like multiple logins and chargebacks, as well as more advanced challenges such as DDoS attacks, collusion, and phishing attempts.

2. On MPL's security strategy: We have implemented a comprehensive and multifaceted security program at MPL to ensure a safe gaming environment. Our GPS identification tools and dynamic table allocation are instrumental in preventing collusion. To tackle fraudulent activities at the root, we have implemented robust mechanisms such as KYC and Documentation checks. Moreover, MPL blocks users who attempt to sign in from devices previously flagged for fraudulent activity. By leveraging machine learning, MPL proactively identifies and flags users exhibiting suspicious playing patterns, effectively thwarting bad actors from engaging in unfair practices. From stringent protocols to real-time monitoring, every aspect of our platform is meticulously designed to offer a secure gaming experience for all our users.

3. On staying ahead of new cyber threats in the gaming industry: Recognizing the dynamic nature of cybersecurity, our approach entails continuous monitoring, analysis of threat intelligence, and regular updates to our defence mechanisms. We operate a global bug bounty program, inviting security researchers worldwide to identify potential vulnerabilities in our systems. This allows our team to promptly address any issues that arise. Furthermore, we regularly conduct security audits and red-teaming exercises to assess the resilience of our security protocols against real-world threats and make necessary adjustments. Our programs undergo validation by external security organisations. We firmly believe in the importance of this validation, as it ensures that our security measures meet industry standards and provides an impartial evaluation of our systems.

4. On MPL’s security certifications: Various independent, third-party organisations, both in India and globally, have scrutinised our systems regularly. These certifications, comprising seven layers of security, serve as a testament to our alignment with industry standards and best practices. Our most recent recognition is the ISO certification, marking us as the first? multi-gaming company in the country to achieve this gold standard. In an independent compliance audit, the renowned consulting firm Arthur D’ Little reviewed our platform across parameters such as user verification standards, player protection, financial integrity, and conflict resolution. We were also awarded the SHIELD Trust Certification by SHIELD, a global risk intelligence company, with a trust score of 95.95% assessing a company’s trust profile and key risk metrics. Additionally, we received the 'AIGF Approved Games Certification' from India’s apex gaming body, the All India Gaming Federation, signifying our? commitment to following all applicable laws and regulations to ensure a safe and regulated gaming environment. Our stamp of approval from iTech Labs, a leading testing and certification laboratory for online gaming systems, includes the 'no bot' policy certification and 'Random Number (RNG) Certification' that assures players of unbiased outcomes. To ensure that our practices remain resilient against evolving threats, we conduct annual third-party audits, with our most recent assessment performed by RedHuntLabs, a cybersecurity solutions provider. Collectively, these certifications affirm MPL's unwavering dedication to providing a secure, transparent, and trustworthy gaming platform.

Home-grown Indus Appstore by PhonePe onboards leading gaming platforms: PhonePe ’s Indus Appstore has reportedly on-boarded leading game developers Nazara Technologies Limited , Gameskraft , A23 ( Head Digital Works ), and Mobile Premier League (MPL) , among others on its app publishing platform. This will allow Indian gaming companies to reach a wider audience, and perhaps also counter the restrictions imposed by Google Play Store.

Nazara Technologies partners with four gaming studios: Publicly-listed gaming firm, Nazara Technologies Limited , has announced its partnership with four gaming studios to launch new games. The partnership is reportedly a part of the company’s target to publish 20 games in coming 1-1.5 years, with plans to invest around INR 1 to 3 crore per game. The games being published as part of the latest partnership are Gravity Shooter by Smash Head Studio , a 2D action game; World Cricket League from WanderMind Labs , a 3D multiplayer cricket experience; Hacked: Password Puzzle by Pixcell Play ; and @ATG Studios’ Laser Tanks and Paperly.

GST hike leads to shut down of another gaming platform: As reported , NFT-based fantasy gaming platform, Striker, became the latest platform to shut operations post the revision in GST on gaming to 28% levy on deposits.

The All India Gaming Federation is the apex industry body for online gaming in India. Being the oldest, largest and the most diverse industry association for online gaming, AIGF’s overarching vision is the growth of the Indian online gaming ecosystem in an open, safe, and accountable manner, and making online gaming a cornerstone of Digital India. At AIGF we want to support and push the vision of Create in India and have the Indian gaming industry compete globally