-
The threat of imminent bans and tax increases could slow the growth of Indian online gaming companies. These companies, mostly associated with Real Money Gaming (RMG), have grown rapidly over the past year despite the legality of RMGs being challenged in courts and debated by government departments. RMG includes daily fantasy sports platforms such as online poker, Rummy and Dream 11.
For example, his Gurugram-based RMG platform, WinZO, has seen its monthly active user base double over the past 12 months, and the average time spent on the platform has increased by 10%. The company claimed that this was the first “off-Play store” app to reach his 100 million users.
Google does not allow platforms like WinZO to be distributed on the Play Store. Because the business model of such game platforms is not aligned with the policies of the tech giants. Fantasy sports companies like Dream11 were also not allowed until recently, but Google’s policy change last month allowed them to list their apps on the Play Store.
Real money gaming platforms have also faced pushback from several states such as Tamil Nadu. Earlier this month, state governments passed ordinances banning online gambling platforms. Additionally, the Group of Ministers (GoM) has been debating the issue of taxing gambling companies, with many executives voicing the same ramifications as has been done in the crypto industry after the new tax was introduced earlier this year.
Roland Landers, executive director of the All India Gaming Federation (AIGF), said gaming revenues are expected to rise after 2022, but bans and regulatory uncertainty could slow the pace of growth and investment. Regulatory uncertainty, as well as earnings, is impacting the ability of these companies to raise capital. Indian gaming startup raised US$424 million in 31 deals between October 2020 and September 2021, compared to October 2021 to September 2022 raised US$212 million in 12 deals.
Online skill gaming companies (including RMG companies) are expected to have annual turnover of Tk 14,000 to Tk 15,000 in 2022, according to a gaming industry executive who spoke on condition of anonymity because he referred to internal policies for 2021. expected to reach. It is projected to grow to 40,000 kroner by 2025.
Gaming startups aren’t as liquid as educational tech platforms or social media companies, but the catwalk is still dwindling as revenue dries up and the need for funding increases. Investors say the gaming company currently has a healthy runway, but an ongoing fundraising winter is exacerbating their concerns.