Exclusive: Major leadership rejig at Nestle India; Rajat Jain to get significant role within group

Meghalaya becomes first Indian state to sponsor an esports team

Indian broadcasters' Himalayan challenge in Nepal

Big salary gaps in Indian communications: Freshers start low, women hit glass ceiling

Infosys, ITC, Titan, Biocon: Industry leaders join Storyboard18’s Share The Spotlight movement

Nobody’s Perfect Retro Porsche Ad

In Conversation With Raja Rajamannar, Mastercard

Shahid Kapoor And Varun Ganjoo Speaks On PokerBaazi's Campaign

In conversation with IHCL’s Puneet Chhatwal & GroupM’s Kate Scott-Dawkins

Why are brands including e-sports in their sports marketing itinerary?

Storyboard18 x The English Nut: How to pronounce these 10 brand names

Experts' Take On Reinvention Of Ad Campaigns Through Technology

Experts Speak On Key Emerging Trends In Cannes Lions Entries

Leaders of the future have to be outstanding human beings: Nestle MD

In conversation with VMLY&R’s Hari Ramanathan

The Modi government on Wednesday approved the establishment of a National Centre of Excellence (NCoE) for Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) in Mumbai as a not-for-profit company. This initiative has been praised by the AVGC industry, which further will attract foreign investments, boosting the sector. 

The Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII), representing industry bodies, will collaborate with the government in setting up the proposed Institute of Immersive Creators (IIIC).

This initiative aims to position India as a content hub, providing state-of-the-art content to enhance India's global soft power and draw foreign investments into the media and entertainment sector. The center will be established in Mumbai as a Section 8 Company under the Companies Act, 2013.

Storyboard18 reported on September 6 that the Department for Promotion of Industry and Internal Trade (DPIIT) is expediting the FDI policy for online gaming, which will formalize 100 percent foreign direct investment (FDI) in the sector.

Telangana has been a frontrunner with its IMAGE (Innovation in Multimedia Animation Gaming and Entertainment) policy, and the IMAGE Tower, a hub for the AVGC industry, is a successful state initiative. 

Shaik Khaja Vali, Chief Operating Officer of Telangana VFX, Animation and Gaming Association (TVAGA), commented, “This is a welcome move by the government. It will help build a strong ecosystem for the AVGC industry. The Central government should support states in growing this ecosystem. The establishment of the NCoE will not only create an academic foundation for beginners but also accelerate the growth of the AVGC industry across the country.”

Vali added, “This initiative will undoubtedly attract foreign investments and benefit numerous startups, animation and gaming studios, and the AVGC industry as a whole.”

AVGC industry experts expect overall revenues to surpass $26 billion by 2030, up from the current $3 billion, which accounts for 5% of the global market. The AVGC sector currently employs 260,000 people and is projected to create over 2.3 million jobs by 2032.

Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming applauded the government's decision and said, "The establishment of the National Centre of Excellence (NCoE) for AVGC-XR marks a milestone for India's entertainment industry. The NCoE will act as a beacon for both amateurs and professionals of the industry to learn and sharpen their craft. The NCoE will further strengthen the roots of this industry and help in creating skilled professionals by nurturing creativity through cutting edge technologies and expert mentorship. This will provide an impetus to the country’s AVGC - XR ecosystem and help solidify India as a powerhouse of this industry, globally."

Speaking about increase in foreign investments, Roby John, CEO and Co-Founder of SuperGaming, said, "The NCoE's role as an incubation hub will be a game-changer for startups, fostering innovation and supporting early-stage companies that could shape the next generation of gaming experiences. Just as IITs and NITs advanced engineering and technology, and IIMs boosted management, we believe the NCoE for AVGC-XR will similarly revolutionize India's gaming industry."

John further noted, "As gaming continues to blend entertainment and technology, we can expect a rise in both domestic and foreign investments, as the global industry views India as a content hub. With a focus on cutting-edge technology, along with government and industry support, significant FDI will flow into the gaming sector, further boosting India's global position in gaming."

Animesh Agarwal, also known as 8Bit Thug, Co-Founder of S8UL and 8Bit Creatives, said, "The establishment of the NCoE for AVGC-XR is truly commendable. It will provide young enthusiasts across the country access to the latest technology, valuable mentorship, and guidance to upskill and enter the industry."

Agarwal also added, "The NCoE will support and nurture the development of Made-in-India game titles for a global audience by leveraging India's rich history and cultural diversity. This will allow Indian content creators to thrive and make a lasting impact in the global gaming ecosystem."

The establishment of NCoE marks a significant step in the government's commitment to empowering India's AVGC sector. This will not only boost the ecosystem but will create millions of jobs leading to innovations and shaping the future of immersive content both locally and globally.

AVGC sector applauds govt nod for NCoE, projects $26 billion growth by 2030

In a pivotal move to accelerate growth and fortify its market position, Nazara Technologies, a listed gaming and media firm, has approved a preferential equity issue to raise Rs 900 crore from a consortium of investors, including SBI Mutual Fund, Junomoneta Finsol, Think Investments, Discovery Investments, and several prominent individuals such as Mithun Sacheti and Siddhartha Sacheti.

The capital infusion, announced on Wednesday, is aimed at fueling strategic acquisitions, expanding business operations, and strengthening Nazara's capacity to seize new growth opportunities. This fundraise marks the largest in the company's history, underscoring its robust market appeal and investor confidence.

In conjunction with the fundraise, Nazara has also acquired an additional 19.35% stake in Absolute Sports, the parent company of the popular sports news website Sportskeeda, for Rs 145.5 crore. 

The payment structure consisted of half in cash and the remainder settled through stock, bringing Nazara's total ownership in Absolute Sports to an impressive 91%.

Nitish Mittersain, CEO & Joint Managing Director of Nazara Technologies, commented, "Nazara has demonstrated its ability to attract top-tier investors who believe in our long-term vision of establishing India's first globally respected gaming powerhouse. This Rs 900-crore fundraise will be instrumental in accelerating our growth across key segments. Additionally, increasing our stake to 91% in Absolute Sports reinforces our leadership in the sports media landscape."

Nazara Technologies raises Rs 900 crore in strategic fundraise, boosts stake in Absolute Sports

The Open Network for Digital Commerce (ONDC) is onboarding Real Money Gaming (RMG) platforms to its network, creating a mutually beneficial situation. ONDC aims to boost the RMG industry by offering a wide range of products and services listed on its network. This initiative is expected to enhance user confidence and trust in these pay-to-play platforms, as they are affiliated with ONDC, a government-backed entity.

ONDC, which was launched in 2021, has gained a lot of traction in the last two years. More than 500,000 sellers have been onboarded on the platform, of which more than 70 percent are small or medium sized sellers. In April 2024, ONDC facilitated around 7.22 million transactions.

Recently, Zupee, backed by investors such as WestCap Group, Tomales Bay Capital, Nepean Capital, AJ Capital, Matrix Partners India (now Z47), and Orios Venture Partners, joined the ONDC network. 

Dilsher Singh Malhi, founder and CEO of Zupee, commented, "We are delighted to partner with ONDC and be listed on the platform. This collaboration strengthens our efforts to responsibly bring the joy of playing culturally relevant Indian games to a larger audience."

Similarly, in May 2024, WinZO partnered with ONDC, enabling ONDC to list its services on the WinZO Store, making them accessible to WinZO's 175 million users. 

Paavan Nanda, Co-Founder of WinZO, said, "Just as UPI revolutionized payments in 2018 and paved the way for companies like ours to scale across 175 million gamers, we envision that the integration of WinZO and ONDC will allow many more companies to innovate on this growing digital commerce platform."

An ONDC spokesperson told Storyboard18, "We are creating a democratized digital commerce ecosystem that will benefit the industry. This will make entertainment available to a larger user base in India and allow them to access a wide range of products and services at competitive prices, all on a single platform." 

The spokesperson also added, "We are in talks with several other gaming platforms across the country. These RMG players will soon go live on the network once they are ready with the necessary infrastructure."

Roland Landers, CEO of the All India Gaming Federation (AIGF), commented, "The onboarding of Real Money Gaming companies on the ONDC marks a significant step towards democratizing digital access and fostering innovation in the gaming sector." 

Landers added, "By leveraging ONDC’s open network, RMG platforms can expand their reach, enhance transparency, and provide players with a more secure and seamless experience. As a rapidly growing industry, we at the AIGF believe this move will not only benefit gaming companies but also contribute to the broader goal of promoting a digital-first economy in India. We are excited to see how this development will support the responsible and sustainable growth of the sector."

ONDC has onboarded multiple companies offering services including grocery, beauty and personal care, electronics and appliances, home and kitchen, health and wellness, beauty, electronics, home and kitchen, fashion. Recently, ONDC onboarded 125 ecosystem stakeholders, including startups and some of the best known unicorns, on its network.

The unicorns that have signed Letter of Intent (LoI) to partner with ONDC include likes of Zerodha, EaseMyTrip, Pristyn Care, Cars24, Physics Wallah, PolicyBazaar, OfBusiness, Livspace and GlobalBees.

EXCLUSIVE: Now ONDC to boost Real Money Gaming industry

SuperGaming, a Series-A funded game developer of the Indo-futuristic battle royale game Indus, has announced that the game will finally launch for users this year. SuperGaming, backed by investors including Bandai Namco, Akatsuki Entertainment Technology Fund, Skycatcher, BAce Capital, and Dream Incubator, has been has been hyping up its launch multiple times via teasers and announcements since its inception in January 2022.

In addition to Indus, SuperGaming is developing its own gaming engine, called SuperPlatform, to run hyperscale, real-time multiplayer games.

Roby John, Founder and CEO of SuperGaming, spoke to Storyboard18 about the game’s launch, investments, and the company's Licensing and Merchandising (L&M) strategies. Last month, the Pune-based gaming studio officially launched Indus, its made-in-India battle royale game, in an open beta phase.

The Indian Gaming industry was abuzz over SuperGaming's strategy to hype up its launch for users. When asked if SuperGaming is hyping its launch date multiple times to raise investor funding, John responded, “Whether you raise less or more money, people will always talk about it. But from an investor's perspective, does one think that investors are dumb to buy into hype? Investors don't buy into dumb hype. They are very smart people. The days of investors falling for hype are over. No investor is giving you money just because of some hype you’ve created.”

He added, “They are actually looking at your real product and its metrics. That’s how I’ve raised every dollar—not based on hype or promises, but on hard-earned metrics in the game.”

Speaking about the time and effort it takes to create a video game, John explained, “Not everyone can understand what it takes to make a game. It’s very difficult to explain that a game can take a decade of your life. That’s something very hard for anyone to grasp.”

How much money is required to build a battle royale game?

According to Tracxn, SuperGaming has raised a total of $6.8 million over three rounds, with the first round of funding on November 12, 2019.

When asked how much money it takes to develop a video game, John said, “Video games are like a hungry dragon. To make any kind of game, you’ve got to keep feeding that dragon forever. I’ve spent the last 15 years feeding the dragon to make these games. I’ve lost count of how much I’ve fed it, but we’ve made and raised money, putting all of it into making these games because we want to create the best experience.”

John declined to share the total amount needed to develop a game like Indus, saying, “We’ve had 150 people working on it, and we’ve invested our youth in developing the game. That’s worth more than any dollar amount. We spent eight years building the engine on which Indus runs. So, when you think about six to eight years of work going into it, it’s a considerable amount of money.”

When asked if the company has any timeline to be profitable, John said, "My goal is to always be profitable. We see the launch as a pivotal moment in our history which is an opportunity to building complex products. It takes years of engineering to build some of these and requires lots of investments."

To build a product that is profitable will obviously be the natural direction of how we're proceeding further. We have an engine business as well, where other companies use our licensed engine. So that offers us other opportunities to make money as well. John added. 

Are Indians paying for virtual goods?

According to Lumikai’s report, the Indian gaming industry experienced significant growth during FY23, reaching 568 million gamers, with 25% being paying users. This reflects a 12 percent increase in gamers and a strong 17 percent growth in paying users compared to FY22.

When asked if Indians are paying for in-app virtual products, John said, “India is the fastest-growing new payer market in the world. India is adding more new payers every month on Google Play than the rest of the world combined. These are people paying for in-app purchases for the first time. The user base of those paying for virtual goods is growing fastest in the world here.”

He added, “In India, the way to make money is to earn a little amount but from a lot of users. We’ve noticed that users don’t make just one purchase. They might start with a small one but make multiple purchases over time. This increases value, but the volume comes first as users make small in-app purchases.”

Licensing and Merchandising

According to Global Market Insights, the gaming merchandise market was valued at USD 420.7 million in 2023 and is expected to grow at a CAGR of over 20% between 2024 and 2032. The Asia Pacific gaming merchandise market is projected to reach USD 650 million by 2032.

Speaking about SuperGaming’s L&M strategy, John said, “We’ve already started working on our merchandise. We’ve been approached by many companies to build products around our IPs. We make sure to wear Indus merch everywhere. We’ve received a lot of inbound partnership offers from those wanting to license our IP. We’ve raised money in Japan and the US, and we have connections with large companies to figure out which IPs to focus on.”

For now, however, John mentioned that it’s too early to pursue L&M deals with FMCG or Indian companies. “Once we scale our user base, we’ll look into it. We’d like to collaborate with companies that value what our game represents.”

The Indian Gaming industry is waiting for Indus’ launch to celebrate the success of India’s first homegrown battle royale game.

‘Not hyping to raise funds, investors are not dumb,’ says SuperGaming Founder

The Directorate General of GST Intelligence (DGGI) has detected 6,084 cases of tax evasion totaling Rs 2.01 lakh crore in the financial year 2023-24. According to its annual report, real-money online gaming companies are the largest tax evaders, responsible for Rs 82,000 crore, which constitutes 41% of the total Rs 2 lakh crore evasion uncovered this year.

The DGGI Annual Report states that actions have been taken against 118 domestic online gaming companies, with Show Cause Notices issued to 34 taxpayers, involving tax amounts of Rs 1,10,531.91 crore. The GST department is investigating 658 offshore online gambling companies

Meanwhile, the GST department has collected Rs 2,675 crore from 574 offshore entities offering digital services to Indian entities in FY24. This revenue from offshore entities has risen from Rs 80 crore in FY 2017-18 to Rs 2,675 crore in FY24.

The report highlights companies such as Udemy Inc. (USA), Canva Pty (Australia), OVH Group (France), and Blackboard (Netherlands) as those who registered with the DGGI's efforts and fulfilled significant tax liabilities. However, the DGGI notes that some entities remain uncooperative and seem to intentionally avoid tax compliance.

These offshore companies include various online casinos based in tax havens like Malta, Cyprus, Curacao, and the British Virgin Islands. Other entities are difficult to trace, as they operate through VPNs or cloud-based platforms.

The detection of GST evasion by the DGGI has been steadily increasing since the implementation of GST in 2017. In 2017-18, Rs 7,879 crore was detected, followed by Rs 19,319 crore in 2018-19, Rs 21,739 crore in 2019-20, Rs 31,908 crore in 2020-21, and Rs 50,325 crore in 2021-22.

DGGI investigating 658 gambling companies, reports Rs 82k crore tax evasion by online 'gaming' companies

Meta to allow Alcohol, Real Money Gambling ads on its platform in India


From August 27, 2024, businesses in India can onboard WhatsApp Business Platform for messaging in the verticals such as Alcohol and Real Money Gambling.

<a href="https://www.storyboard18.com/advertising/exclusive-meta-to-allow-alcohol-real-money-gambling-ads-on-its-platform-in-india-40062.htm">Read more</a>


Major leadership rejig at Nestle India; Rajat Jain to get significant role within group


Nestle India's Rajat Jain to get leadership role within Nestle Group and Rupali Rattan to succeed as Foods Business head. Gopichandar Jagatheesan and Manav Sahni will get new portfolios.


<a href="https://www.storyboard18.com/brand-makers/exclusive-nestles-rajat-jain-to-get-leadership-role-within-group-rupali-rattan-to-succeed-as-foods-business-head-39600.htm">Read More</a>


Prasar Bharati OTT likely to be launched on September 15


Last month, the public service broadcaster invited submissions for the integration of various applications, including gaming, OTT, and educational apps into its platform and also sought onboarding linear satellite TV channels.


<a href="https://www.storyboard18.com/how-it-works/prasar-bharati-ott-likely-to-be-launched-on-september-15-exclusive-41501.htm">Read More</a>


GCPL elevates Ashwin Moorthy to Global Head of Category Direction and Innovation


Ashwin Moorthy was also inducted into the GCPL Global Management Committee and will be part of the senior management.


<a href="https://www.storyboard18.com/brand-makers/gcpl-elevates-ashwin-moorthy-to-global-head-of-category-direction-and-innovation-41940.htm">Read More</a>


Lowe Lintas wins creative mandate for battery brand Amaron


The incumbent ad agency of Amaron was Ogilvy, which has been associated with the brand for over two decades.


<a href="https://www.storyboard18.com/advertising/exclusive-lowe-lintas-wins-creative-mandate-for-battery-brand-amaron-40244.htm">Read More</a>


Meghalaya becomes first Indian state to sponsor an esports team


Meghalaya's vision includes developing esports infrastructure, hosting tournaments, and providing comprehensive support to players, with the aim of bringing them to the forefront and representing Meghalaya, and India, on the global stage, including in future esports Olympics.


<a href="https://www.storyboard18.com/gaming-news/meghalaya-becomes-first-indian-state-to-sponsor-an-esports-team-39918.htm">Read More</a>


Centre, State governments testing anti-deepfake tech, likely to launch this year


Recently, cricketer Virat Kohli fell prey to deepfake video which went viral on social media platforms.


<a href="https://www.storyboard18.com/digital/exclusive-centre-state-governments-testing-anti-deepfake-tech-likely-to-launch-this-year-40950.htm">Read More</a>


YouTube under MIB’s scrutiny for violating content policy


From January to June 2023, Google received 2191 content removal requests from the government and 1677 content removal requests were received between July and December 2023.


<a href="https://www.storyboard18.com/how-it-works/exclusive-youtube-under-mibs-scrutiny-for-violating-content-policy-40717.htm">Read More</a>


ASCI escalates issue of illegal betting and gambling platforms' ads to MIB


Storyboard18 recently reported that offshore illegal gambling firms have been using the Pro Kabaddi League (PKL) as a sporting platform for surrogate advertising.


<a href="https://www.storyboard18.com/advertising/asci-escalates-issue-of-illegal-betting-and-gambling-platforms-ads-to-mib-41941.htm">Read More</a>

Indian broadcasters' Himalayan challenge in Nepal

Indian broadcasters discontinued their feed as they were not being paid for their services by the channel distributors in Nepal for almost two years.

<a href="https://www.storyboard18.com/how-it-works/indian-broadcasters-cease-channel-distribution-in-nepal-over-malpractices-40414.htm">Read more</a>

DPDP Act draft rules expected within two weeks; transition period likely to be restricted to 6 months

Contrary to the expectations of telcos and tech companies, the Digital Personal Data Protection Act, 2023 draft rules likely to have a transition period of only around 6-8 months.

<a href="https://www.storyboard18.com/digital/dpdp-act-draft-rules-expected-within-two-weeks-transition-period-likely-to-be-restricted-to-6-months-42169.htm">Read more</a>

All the big breaks and exclusives only on Storyboard18

Software giant Microsoft is laying off 650 employees in its Xbox unit, Reuters news agency reported. The company is sacking the staff mostly in corporate and supporting functions. "No games devices or experiences are being cancelled and no studios are being closed as part of these adjustments today," the company said in a memo, as per Reuters.

This would be the third layoff cycle of this year after Microsoft's Xbox unit cut 1,900 jobs in January, mostly from Activision units and studios.

	
<a href="https://www.storyboard18.com/gaming-news/tamil-nadu-examining-australia-like-gaming-policy-video-game-industry-tight-lipped-42135.htm">Tamil Nadu examining Australia-like gaming policy, video game industry tight-lipped</a>


In May, the company decided to shut four studios acquired as part of its $7.5 billion purchase of ZeniMax. 

As per the Reuters report, the company is trying to rein in costs and integrate its massive $69 billion acquisition of Activision Blizzard Inc. 

	
<a href="https://www.storyboard18.com/digital/free-to-play-gaming-platform-nostra-draws-in-115-million-active-users-in-a-year-40008.htm">Free-to-play gaming platform Nostra draws in 115 million active users in a year</a>

The gaming industry has witnessed several challenges such as the rise of game development costs and tepid growth this year.

Sony Group Corp, Take-Two Interactive Software Inc., and Electronic Arts are among the major companies that have slashed jobs and have shelved their marquee projects.


Recently, Sony axed the multiplayer shooter Concord just two weeks after its release as the game received muted responses.

Microsoft lays off 650 Xbox employees; cites cost cutting, integration efforts

The Tamil Nadu Online Gaming Authority (TNOGA), during an awareness campaign on the ill-effects of gaming, strongly labeled gaming addiction as a mental disorder. The video gaming industry has remained tight-lipped, implying that the government was focusing on Real Money Gaming (RMG) players. However, RMG players argue that the Tamil Nadu government was referring to the video gaming industry, especially since the campaign targeted schoolchildren below 18 years of age. 

Chief Secretary N. Muruganandam, who initiated the campaign, stated that online games are negatively impacting students both psychologically and physiologically. He noted that governments in China and Japan have already banned these online games, and Australia is considering a ban for children under 16. Muruganandam hinted that certain online games could be banned again in the state.

When asked if Tamil Nadu is considering legislation similar to Australia’s upcoming online gaming laws, which are expected to be introduced before the next election, Muruganandam responded, "We are examining a policy similar to Australia’s online gaming." Australia is likely to age restrict social media and gaming platforms. 

Highlighting the increasing trend of gaming addiction over the past five years, he explained, "It can be described as internet gaming disorder or pathological gaming disorder. The origin of this disorder can be traced back to the COVID-19 pandemic. During that time, schools were closed, and parents had to provide mobile phones to their children for online classes."

Nirali Bhatia, a Cyber Psychologist & Internet Addiction Therapist, stated, "Recently, I have seen a rise in gaming addiction, affecting both kids and adults. This shows that banning games is not the solution. The government should impose strict regulations to curb such addictions. All stakeholders must work together to reduce the instances of gaming addiction."

Bhatia further said, “Today, multiple violent games are affecting behaviour of kids. Showing lack of empathy, living in isolations, obesity are some of the ill effects that gaming addiction leads to.” 

A spokesperson from the All India Gaming Federation (AIGF) added, "Global research consistently shows that outright gaming bans are ineffective. In fact, they often push users toward underground or offshore platforms, where they face greater risks due to the lack of oversight. These platforms usually operate without any consumer protection, compromising users' safety and data privacy."

The AIGF spokesperson also mentioned, "Imposing time limits or gaming restrictions, such as those on playtime or spending, has also proven ineffective worldwide. Users often bypass these restrictions using VPNs and other tools, making such regulations difficult to enforce. Moreover, blanket restrictions or bans infringe on individual rights and, as courts have repeatedly noted, violate constitutional protections."

TNOGA Chairman Mohammed Nasimuddin stated that preliminary survey analysis suggests that about 20 percent of students in the state are addicted to online games.

When Storyboard18 reached out for comments, several video game companies declined to speak on the record, stating that "the TN government’s awareness campaign focused on Real Money Gaming players, which pertains to online gaming. It has nothing to do with the video game industry."

Similarly, RMG players said, "The Chief Secretary was addressing schoolchildren; RMG is for users aged 18 and above."

Interestingly, during one of the consultative processes, the Tamil Nadu government clarified that they do not differentiate between the video game and RMG industries.

Tamil Nadu examining Australia-like gaming policy, video game industry tight-lipped

On Wednesday, the Chief Secretary of the Tamil Nadu government took a firm stance against online gaming. The Tamil Nadu Online Gaming Authority (TNOGA) launched an awareness campaign aimed at addressing the addiction issue of online gaming in the state. This campaign comes as Tamil Nadu is in the process of developing a policy for regulating online gaming.

During the event, N. Muruganandam, Chief Secretary of Tamil Nadu stated that teachers and parents should be informed about the addictive nature of online gaming. He also referenced the government’s decision to implement the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022.

Muruganandam also suggested the parents and teachers to monitor activities of their kids to keep them away from online gaming addiction. 

Hinting at the possibility of once again banning certain games in the state, Muruganandam remarked that during the COVID-19 pandemic, many young children became addicted, prompting the government to introduce legislation authorizing the regulation of online games in the state.

An RMG (Real Money Gaming) operator, speaking on condition of anonymity, said, “This statement from the government comes at a time when the state is drafting a policy around online gaming. We ensure that our games are safe to play. Additionally, we comply with all central government regulations.”

Another RMG operator added, “The government has yet to hold a second consultative meeting with stakeholders to finalize the draft of the policy. Such a harsh stance could complicate the process of creating a comprehensive policy on gaming.”

On July 24, 2024, the first consultative meeting took place between Tamil Nadu officials and representatives from the All India Gaming Federation, Federation of Indian Fantasy Esports, E-Gaming Federation, and the Game Developers Association of Tamil Nadu.

It’s worth noting that in November 2023, the Madras High Court struck down the law banning online money games such as rummy and poker, declaring the law "unconstitutional."

A bench comprising Chief Justice SV Gangapurwala and Justice PD Audikesavalu stated that while the state government has the authority to create rules to limit the time spent on online games or to set age restrictions for both games of chance and skill, it can only ban games of chance, not games of skill.

The court further clarified that the Act could not be used to ban skill-based games like rummy and poker.

"Certainly, online gambling can be prohibited by the state. The state has ample authority to enact legislation prohibiting online gambling, and it also has the power to regulate online skill-based games within Tamil Nadu. Instead of regulating these skill-based games, such as rummy and poker, the state simply banned them, which exceeded its legislative competence," the High Court stated.

Tamil Nadu government is yet to decide a date on the second consultative process with the stakeholders. 

Breaking: Tamil Nadu takes strong stand against online gaming, RMG players left red faced

The Real Money Gaming industry is currently suffering with GST tax burden of 28 percent, the GST council meeting which is currently taking place at Sushma Swaraj Bhawan, in New Delhi does not have RMG industry as an agenda. Despite multiple requests from the sector, the Indian government has ignored the sector since past two years. 

It should be noted that in its 50th meeting held in July 2023, the GST council decided to levy 28 per cent tax -- the highest slab -- on the full face value of online gaming, bringing it on par with casinos and horse racing. 

A RMG player on condition of anonymity said, “It is unfortunate that the government did not listen to our requests despite being one of the highest tax paying sector. Many companies are today dead because of these GST norms.” 

The source further said, “Shockingly, these legitimate gaming players are now opting for illegal ways and are offering game of chance to survive in the industry.”



GAMING