BW Gaming World
The world of online gaming has undergone a transformational shift in recent years, with advancements in technology bringing unprecedented changes to how we engage with games, from traditional video games to immersive virtual reality experiences. This evolution in the gaming landscape can be largely attributed to the continuous advancement of technology. The Covid-19 pandemic has significantly impacted the growth of the online gaming industry. As the national lockdown was announced, people increasingly turned to digital platforms and online games, leading to a tremendous surge in the industry.
In recent decades, the popularity of online gaming has soared, particularly among the younger generation, who now view it as a viable career option. The industry has emerged as one of the fastest-growing globally and has also supported other sectors such as IT and animation. India’s gaming industry alone is expected to hit $8.6 billion by 2027, indicating its enormous potential for expansion. As a result of the proliferation of online games, a substantial sector has emerged with the aim of supporting the growth of digital gaming infrastructure. This sector encompasses game publishers, payment solution providers, smartphone manufacturers, and network service providers. This development may, in turn, foster additional job opportunities and mitigate unemployment rates.
Recognizing its burgeoning growth, the central government made a historic move by referencing the animation, visual effects, gaming, and comics (AVGC) sector in the 2021 Union Budget. Finance Minister Nirmala Sitharaman declared the formation of a promotional task force to tap into the industry’s enormous potential for job creation in the said fields. This declaration sparked jubilation among numerous startups, particularly in the gaming industry, who have encountered obstacles from various state governments concerning their industry classification.
If we trust the industry analysts, then implementing the council’s recommendations could provide considerable advantages to the sector, particularly for game developers, as it would encourage the production of high-budget games originating from India. This, in turn, is expected to spur the emergence of more gaming intellectual property (IP) from the country. The multi-ministry task force has also put forth proposals to enhance industry engagement, boost employment prospects, and facilitate the integration of students from non-metropolitan cities and Northeastern states. The unregulated players have been the biggest competitor and bane of the organised online gaming industry.
Establishing a self-regulatory organization in the gaming industry is a step towards building a comprehensive framework that promotes responsible and safe gaming practices in the country. To comply with regulations, online gaming intermediaries must carry out extra measures such as displaying a registration mark on all online games registered by a self-regulatory body. They are also required to inform users about policies related to withdrawal or refund of deposits, how winnings are determined and distributed, fees and other charges, as well as the KYC procedure for user account registration. This move will grant legitimacy to the sector, which has been advocating for it for quite some time. Additionally, bringing online games within the purview of the IT Act will help eliminate fraudulent and unreliable operators.
The culmination of these factors will broaden the sector, creating opportunities for state-of-the-art gaming studios, games, and platforms. As India has always been a pioneer in technology adoption and provision, the gaming industry is expected to follow suit.
Way forward
India has emerged as a central player in the rapidly expanding global gaming economy. To harness the full potential of the dynamic Indian online gaming ecosystem, it is imperative to establish a comprehensive and coherent legal framework for online games. This framework should promote operational stability and optimize profitability. By formalizing the industry, the framework would enable increased tax revenues for the government and enhance financial transparency. In addition, it would empower entrepreneurs to innovate and create while prioritizing the welfare of the general public. Overall, a forward-looking and appropriate legal framework along with continued technological revolution is pivotal for sustaining the growth and triumph of India’s gaming industry.
Written by Ankur Singh, Founder and CEO, Witzeal Technologies
