Budget 2024: Gaming sector expects strict regulations for online games from FM Sitharaman
Budget 2024 Expectations: Experts say some changes that could be brought about in the budget will equate the gaming industry with the toy industry, especially when it comes to the development of games and related products.
Budget 2024: During FM Sitharaman's Budget Presentations 2024, the gaming sector expects strict regulations for online games. Some experts said progressive allocations should be made to the sector in the upcoming Union Budget, including implementation of IT rules for online games and setting up of self-regulatory bodies. Others said they look forward to budgetary allocations in line with AVGC policies, in line with the recommendations of the AVGC Task Force report of the Ministry of Information and Broadcasting.
Soham Thacker, founder of Gamerji, said there needs to be something for real money gambling, casino games and the gaming industry in general that can involve playing video games. He further said that the budget should focus on the startup scenario in general as we keep talking about India being a startup friendly country and India Startup programs still lack incubation awareness and penetration and the government.
“In many developed and developing countries, there are various government subsidies, whether for investment, ease of doing business or amendment of laws for start-up companies. I hope it softens a bit, especially when it comes to an early-stage startup like us, rather than limiting taxation to the income point it should be of a company's growth trajectory or incubation time frame. Those are the few things I expect from the budget along with a lot of investments from the government point of view to boost the gaming industry as it is growing exponentially as we all know,” he said.
Roland Landers, CEO of All India Gaming Federation, said, “Significant regulatory progress has been made in the online gaming sector, and we expect progressive allocations to be made to the sector in the upcoming union budget, including for implementation of IT rules for online games. and the establishment of self-regulatory bodies. In addition, we look forward to budget allocations that are in line with AVGC policy, in line with the recommendations of the AVGC Task Force report of the Ministry of Information and Broadcasting.
He said that given the very positive outlook for this industry, there is a lot to expect for the gaming sector. We see this budget as a symphony of support, by aligning regulatory clarity with fiscal incentives and strengthening the legal infrastructure to stimulate growth. With the right emphasis, the online gaming industry can be a cornerstone of Digital India and serve as a catalyst for the government's vision of Amrit Kaal – a five trillion dollar economy.
Vidushpat Singhania, Managing Partner, Krida Legal (specializing in gambling laws), said: “The Indian gambling sector was poised to become a global leader, on par with the IT industry. Certain government policies such as appointing a central ministry for online gaming, promoting gaming exhibitions and promoting funds for the AVGC sector kept the gaming industry and its investors in a positive and optimistic mindset were wrong.
He said minor adjustments such as revising the GST on the gaming industry and imposing it on gross gaming revenues in the Union government's interim budget will restore operator and investor confidence. This would also be in line with the government's position after six months, especially since the government has made a statement before the Supreme Court that tax collection after the clarification/amendment has not been as per their estimates.
He added that some other changes that could be brought about would equate the gaming industry with the toy industry, especially when it comes to the development of games and related products.
Dr. Aruna Sharma, Policy Advisor and Practitioner Development Economist, said: “Over the past few years, the gaming industry has witnessed exponential growth, offering the potential to establish India as a prominent hub within the sector. Critical considerations such as mitigating shocks such as GST improvements and retroactive effects are imperative. A comprehensive understanding of goods and services is essential to address these issues.
She said the anti-money laundering framework needs to be effectively monitored due to the digitized nature of the entire process. “By embracing and regulating the iGaming industry, India can achieve positive outcomes, including increased revenues, economic growth, job creation and improved consumer protection. It is time to lay the foundation for a regulated and thriving Indian market, ensuring sustainable development and reaping the benefits of a thriving iGaming sector. There are positive aspects to the formation of SRO and the development of SRB. IT rules are in place and states like Karnataka are taking steps in the positive direction,” she said.