MP calls for regulation of online gaming in India

Sushil Kumar Modi wants a uniform tax on online gaming.
Sushil Kumar Modi wants a uniform tax on online gaming.

Sushil Kumar Modi has expressed his concerns on online gaming and claims the government should regulate the industry.

India.- As online gaming continues to rocket in India, Sushil Kumar Modi, an MP at the upper house, Rajya Sabha, has said the government should regulate the industry. According to Modi, 43 million people in India play online games and the time spent on online gaming each week has increased by 60 per cent to four hours when compared to pre-pandemic figures.

Modi said India needs a regulatory framework and a uniform tax on online gaming. He also expressed concerns about young people being able to access online games as said it could lead to gambling-related harms.

Some Indian states have already tried to expressly ban online gambling. Karnataka announced in September that it would amend its laws to prohibit all forms of betting gambling, including games of skill. However, several companies have criticised the amendment, arguing that it would damage the state’s standing as a tech centre and start-up capital. 

In September, the Kerala High Court rejected the government’s attempt to ban online Rummy, arguing that it was a skill-based game and therefore protected by the Indian Constitution. 

A report entitled “India’s $5bn market opportunity” from venture capital firm Sequoia Capital and management consulting firm BCG recently suggested that the Indian mobile gaming industry will see revenue increase from $1.5bn in 2020 to $5bn in 2025.

According to the report, 80 per cent of the $1.5bn generated by mobile games last year came from in-app purchases and real money gaming (RMG). There are currently more than 300 million gamers in the country, and revenue from all gaming was up 500 per cent from 2016 to 2020. 

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