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The Directorate General of GST Intelligence has suggested that there is a need for an arrangement with foreign governments to tackle tax evasion in Online Information and Database Access or Retrieval (OIDAR) services like online gaming. Such arrangement with foreign government will also help blocking websites of notorious illegal gambling and betting websites. 

Recently, 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. 

OIDAR services includes a wide array of services viz cloud services, digital content, online gaming, online advertising etc. When such services are provided by an offshore entity to a non-taxable recipient, the supplier becomes liable for obtaining registration and discharging GST on the same.

Currently, as many as 574 offshore entities providing OIDAR Services have registered themselves with the GST department, and annual revenue from this sector has increased from Rs 80 crore for the FY 2017-18 to Rs 2,675 crore for 2023-24 fiscal.

The Directorate General of GST Intelligence (DGGI) in its annual report noted that since the OIDAR service providers are located abroad it becomes a challenge in GST enforcement and hence the sector remains relatively untapped and holds tremendous revenue potential.

On dealing with such offshore suppliers, it has also dawned that several such suppliers are ignorant of the law, and upon conveying the legal position clearly, such suppliers agree to comply with the GST mandate, it said.
These include the likes of Udemy Inc (USA), Canva Pty (Australia), OVH group (France), Blackboard (Netherlands) etc who registered themselves following efforts of DGGI and discharged significant tax liability.

"However, there are other entities that are non-cooperative and appear to intentionally avoid tax compliance. These include various online casinos based out of tax-havens like Malta, Cypress, Curacao, BVI etc. There are also other entities that are difficult to reach out to on account of them operating through VPN or cloud-based platforms," the DGGI said.

The GST intelligence wing said that unique challenges in tax enforcement in this sector necessitate out-of-the-box interventions to plug revenue leakage.

The DGGI suggested steps like registering with the KODEX platform to receive the data/information in respect of offshore suppliers, as well as coordination with the Reserve Bank of India to obtain relevant data pertaining to forex transactions. 


DGGI will shake hands with foreign govts to crack whip on offshore gambling firms

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

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. 

	
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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.

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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

India should consider adopting online Real Money Gaming (RMG) policies similar to those in the UK and EU, according to a recent report by Gujarat National Law University (GNLU).  The GNLU said that India should adopt risk minimization strategies used in the European Union and the UK while cautioning against restrictive measures like in China. 

Emphasizing risk minimization, it highlighted the significance of user education and industry standards. 

In its report, GNLU has also recommended that India should adopt a regulatory framework that mandates operators to incorporate limit-setting features for users.

GNLU's report has called for a dedicated regulatory body to oversee RMG industry, ensuring compliance and promoting responsible practices.

The GNLU has advocated for a uniform central law for users, replacing fragmented state regulations which complicates the regulatory process for RMG players and users in the country.

According to the former senior director and GC (Cyber Law and Data Governance), Ministry of Electronics and IT (Meity), "Online platforms should empower users with tools to control their gaming and they also have a duty of care toward users to make sure they don't go overboard by setting upper limits. Educating the users is also key to ensuring responsible gaming. This approach balances player protection while ensuring industry growth and is based on global best practices".

India's gaming industry is second-largest after China with the community comprising 500 million gamers.

Dr Sanjeevi Shanthakumar, Director of GNLU said, "The online gaming sector has immense potential to contribute to our economy and provide entertainment to millions". 

"It is important to have a robust regulatory framework that ensures user safety and prevents any potential harm," he added.

India should adopt online gaming policies like UK, EU: GNLU

The E-Gaming Federation (EGF), an association of top Real Money Gaming (RMG) players met Ministry of Home Affairs (MHA) to submit details on 34 illegal gambling and betting companies currently operating in India. 


Ministry of Electronics and Information Technology (MeitY) is likely to take action against these offshore gambling platforms. 


According to sources, the officials from EGF met senior officials at MHA and shared critical information which included illegal gambling and betting companies' business addresses, contacts, IP addresses used for business operations, among others critical details.


“In last six months more than 250 such complaints have been submitted via EGF. After the complaint is made, MeitY, the authorized agency takes down the website and app. However, the notorious offshore platforms at times change their servers and start operating in India again,” revealed a source on condition of anonymity.


When contacted, Anuraag Saxena, Chief Executive Officer of E-Gaming Federation, refused to divulge any details regarding the meeting. 


However, he said, “We regularly meet government officials and submit complaints. It is a routine process to meet law enforcement agencies.” 


In its continuous fight against such illegal apps, Centre blocked a total of 581 apps in December last year- 174 of which were betting and gambling apps, and 87 were loan lending apps. Some of the apps that were banned included Mahadev, Parimatch, Fairplay, 1XBET, Lotus365, Dafabet and Betwaysatt.


Storyboard18 was first to report on illegal gambling and betting apps adopting new modus operandi to acquire Indian users. These offshore gambling apps are now enticing Indians by providing free pornographic content in exchange for downloading their illicit APK apps for smartphone users.


It is to be noted that the offshore sports betting market receives an estimated $100 billion annually in deposits from India and has been growing at 20 percent per year in the last three years post-pandemic, according to a Think Change Forum (TCF) report.


Despite best enforcement efforts, the illegal offshore betting industry (under the new GST regime) will continue to grow at 20 percent at the least, leading to a tax loss figure of Rs 6,72,205 crore by 2026, the report noted.


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EXCLUSIVE: E-Gaming Federation meets MHA, submits details of 34 companies for banning

Free-to-play gaming platform Nostra has surpassed 115 million active users on its platform that engage in short-duration games. The platform on Tuesday released 'Mobile Gaming Trends 2024', highlighting a 41% increase in active users between July 2023 and March 2024, primarily driven by growing interest in ‘snackable’ games that do not require downloading.

Nostra's trend report also underscored the rise in women gamers. It mentioned that 72% of women gamers play multiple times in a day, a frequency on par with that of male gamers. 

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"Gamers on Nostra engage in these quick sessions multiple times daily, averaging about 11 minutes per session, exploring up to three different games each day, and returning to their favourite titles up to four times a day," Nostra's report added.

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Nostra has witnessed a substantial increase among young gamers, particularly those aged 18-24. Between July 2023 and March 2024 period, there was a 21% rise in young gamers, who now make up 71% of Nostra's user base. The report noted that 'Casual games' (32%) have been top choice, followed by 'arcade' (31%) and 'racing' (17%). 

"Unlike traditional gaming that demands long hours of play, we understand that for most, gaming is about those 10-minute breaks between activities. With nearly 50% of users appreciating our 'No Download' option and 46% valuing the ability to launch games from their lock screens, we're redefining convenience and accessibility in gaming," Deepak Venkataramani, Vice President & General Manager, Nostra said.

Free-to-play gaming platform Nostra draws in 115 million active users in a year

India has the second largest global internet user base of over 1.2 billion users as of 2023. India also has a large youth population. The prevalence of digitally savvy population the government’s focus on initiatives such as Digital India and Start-up India, has helped the Indian economy to transition into a digitally empowered society and knowledge economy. 

However, with growing technology adoption also comes the responsibility of the government to protect and safeguard citizens against online risks associated with data privacy, money laundering, and frauds through suitable regulatory measures.

Take for instance the recent growth of online gaming users. Notwithstanding the current GST woes of the sector, the government has recognised the sector’s economic potential and hence created a proper regulatory framework to enable its orderly growth. However, this framework is still to be made operational due to which the Government has not been able to objectively differentiate legitimate gaming platforms from betting and gambling platforms. This has resulted in proliferation of illegal offshore online betting and gambling activities and many other fly by night operators. 

These platforms pose significant threats to unsuspecting users in the form of financial frauds and scams. Various studies and reports have estimated the betting and gambling market in India to be worth USD 150 billion or approximately INR 10 lakh crore. Since this sector exists outside the ambit of regulation and the government, there is a huge loss in revenue for the exchequer. 

Offshore gambling and betting companies are not subject to Indian regulation. Hence very little is known about their antecedents, financial wherewithal, corporate governance principles, or ownership. An Indian citizen participating on these platforms has no means of legal recourse. Hence, the bigger and more concerning problem is that of money laundering and terror financing. 

Many of these platforms can pose potentially serious threat to national security. Several studies have discussed the threat of illegal betting and gambling platforms acting as a channel for terror financing and money laundering. By exploiting the anonymity provided by VPNs, these platforms can manipulate games and often unsuspecting users without detection. Funds are transferred through structured payments to evade regulatory scrutiny, effectively turning what was once a localised crime into a global problem. The OECD and the UK Gambling Commission have already flagged offshore online gambling as a significant risk for money laundering, terrorist financing , and financial fraud particularly with regard to compromised financial data of participating citizens.

Additionally, these platforms have implemented practices that present significant regulatory and legal challenges. One prominent tactic is surrogate advertisements, where betting and gambling sites are indirectly promoted under the guise of unrelated products. This strategy complicates regulatory efforts and makes it difficult for consumers to recognize the associated risks. Moreover, many illegal platforms exploit vulnerabilities in payment systems to facilitate seamless transactions while bypassing regulatory scrutiny. 

A key reason behind the emergence of these illegal platforms is the lack of a robust regulatory framework that removes all extant ambiguity. Without an objective regulatory framework that can categorically distinguish permissible online gaming (i.e. games of skill) from betting and gambling (i.e. games of chance), these platforms can always lure users with surrogate advertising and modified game formats, under the guise of games of skill.

The government has taken significant steps to address the issue of burgeoning illegal online betting and gambling platforms, particularly because of the risks they present with regard to terrorist financing and national security. The appointment of the Ministry of Electronics and Information Technology (MeitY) as the central regulatory authority for online gaming and the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules (2021), were steps in the right direction to ensure that the online gaming sector can grow responsibly. These Rules, however, are yet to be made fully operational.

In the meanwhile, the Ministry of Information and Broadcasting (MIB) and the Central Consumer Protection Authority (CCPA) have issued advisories to curb the promotion of illegal betting and gambling platforms. In a decisive move to protect citizens, the government blocked over 200 websites and apps under Section 69(A) of the Information Technology Act (2000), thereby preventing access to these illegal platforms and mitigating risks of financial fraud and money laundering. However, the sheer numbers of these platforms and ability to quickly re-emerge under new guises present challenges.

To effectively curb this persistent issue of illegal betting and gambling platforms in India, it is imperative to strengthen and streamline regulatory measures. The current regulatory framework is not equipped to combat the rapid proliferation of these platforms, which exploit technological loopholes and regulatory gaps. While strengthening regulatory measures would help systematically identify illegal platforms, it is through education, awareness, and access to information that will help citizens to make informed choices and protect themselves from fraud, scams, and financial fraud. It would also prevent these platforms from exploiting users as conduits for money laundering and terror financing.

A simple step of establishing a registration mechanism to whitelist legitimate online real-money gaming platforms will help distinguish legal gaming operations from illicit betting and gambling ones, providing clarity and protection for users engaging in lawful online gaming activities even as blocking access to illegal platforms continuous and under Section 69A of the IT Act (2000). The registration mechanism will also be useful for enforcing blocking orders promptly by helping internet service providers (ISPs) identify and blacklist illegal websites and applications.

Implementing the IT Rules 2021, specifically tailored for online gaming intermediaries, would further clarify the boundaries between permissible online real money gaming and illegal betting and gambling.

Another step that can be taken by the government would be to examine online betting and gambling activities under the ambit of Prevention of Money Laundering Act, 2002 (PMLA). 

If illegal betting and gambling is brought under the purview of PMLA, authorities would have greater power to investigate financial transactions, trace illicit proceeds, and impose suitable penalties on those involved.

The regulatory framework should also ensure stringent action against illegal online betting and gambling advertisements. Industry and the Advertising Standards Council of India should work together to develop and enforce suitable advertisement guidelines. This would help mitigate the risk of citizens being exposed to illegal platforms. These combined efforts would ensure a more regulated and secure online gaming environment, protecting users from the risks of participating in illegal betting and gambling platforms.

The author of the article is Nirupama Soundararajan, Co-Founder and Partner, Policy Consensus Centre. Views expressed are personal.

India's digital dilemma: Balancing growth with gaming governance

Finance Minister Nirmala Sitharaman has announced significant revisions to the capital gains taxation structure. The Union Budget 2024 has received positive feedback from stakeholders in the gaming and esports industries. Measures like as the elimination of the Angel Tax and reduced capital gains tax for startups have been welcomed.

Rajan Navani, President of the Indian Digital Gaming Society backed by CII and the Vice Chairman & MD of Jetline Group of Companies and the founder and CEO of JetSynthesys states, "The reduction in tax on long-term capital gains from the sale of shares of startups and unlisted entities by 8-9% to 12.5% is another significant advancement. Bringing this rate on par with listed shares achieves long-awaited parity and will massively increase domestic capital investment through family offices and venture funds in startups and new-age businesses."

He points out the allocation of Rs 2 lakh crore, including Rs 1.48 lakh crore for education and skilling, highlighting the government's commitment to preparing our youth for the future. The new centrally sponsored skilling scheme, in collaboration with state governments and industries, is a significant advancement. By designing courses with industry input, the government ensures that our youth will emerge as seasoned professionals, ready for a rapidly evolving job market. This continuous upskilling approach aligns with the principle of a lifetime of careers, empowering individuals to adapt to technological advancements and industry shifts.

While addressing the impact of union budget on the gaming and esports industry, he says that the industry has long advocated for youth upskilling, and it is encouraging to see the government align with this vision. A tech-savvy, skilled workforce is vital for these sectors, and the increased investment in education and skilling will undoubtedly equip young talent to excel.

Akshat Rathee, Co-founder and MD of NODWIN Gaming says, "We’re happy to hear the Hon'ble Finance Minister’s announcement to rollback the Angel tax for all investors in today’s Union Budget. This move will create a vibrant environment for startups across the nation and is a major boost for Indian gaming and esports entrepreneurs, leading to more opportunities as well as higher engagement with the youth. The plan to simplify FDI rules and promote the use of the Indian Rupee for overseas investment is a promising approach that will encourage global entertainment giants to invest in India, further strengthening our position as a global cultural and entertainment destination."

According to him, focusing on enhancing sports infrastructure in Bihar is a positive step since the state has already shown its commitment to integrating esports into mainstream sports. This additional government support will help nurture young talent and promote esports as a new-age sport nationwide.

"Additionally, reducing the BCD on mobile phones, chargers, and PCDA will make smartphones more affordable, which is fantastic for mobile gaming enthusiasts. This will boost mobile gaming adoption within the nation and further strengthen India's position in the global mobile gaming market, bringing us closer to becoming the largest. Overall,  we’re excited to dive into these opportunities to drive growth and make waves," he states. 

Roby John, CEO and Co-Founder of SuperGaming shared his opinion on the reduction in customs duty on mobile phones and the removal of the Angel Tax. He says, "Today's Union Budget, presented by Finance Minister Nirmala Sitharaman, offers multiple benefits to the country’s video gaming ecosystem. The reduction in basic custom duty on mobile phones is a move that will make smartphones more affordable, which is excellent news for India's extensive mobile gaming community."

"For our upcoming game, Indus, and other games in the market, this means reaching a broader audience and accelerating growth in the mobile gaming sector," and adds, Additionally, the removal of the Angel tax is a major boost for the entire startup ecosystem. This will give relief to more gaming and esports entrepreneurs who want to bring their innovative ideas to life, thereby strengthening the gaming and esports ecosystem in India. Overall, we are confident that these measures will propel India's tech and video gaming industry, bringing India’s gaming culture forward,” he empahsizes.

Addressing the budget, Dr Aruna Sharma, Policy Advisor, Practitioner Development Economist and Former Secretary to GoI proposes alternatives such as merging apprenticeships with MSMEs and using online games to engage skill development. She says, "The Economic Survey released on 22nd July highlights the urgent need for right skilling, revealing that 50% of the youth are not employable due to inadequate skills. As an outcome, like this year, skilling has been a focus area for the government in the past many years."

She further adds, "However, despite a decade of investment in skilling, the allocated budgets have not delivered the desired results. Attaching a couple of apprentices to MSMEs might prove to be essential. Furthermore, online gaming could be an effective tool for skill development through engaging methods. We need trained individuals who are focused, dedicated, and hardworking."



ONLINE GAMING