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A Conducive Ecosystem Can be a Game Changer for E-gaming
Businessworld India
|December 31, 2022
AS MANY AS 2.7 BILLION e-gamers hone their skills and participate in this electronic sport across the globe. The e-gaming business is expected to exceed $1.5 billion in 2022 and $5 billion by 2025 with a global CAGR of 38 per cent. In India the number of gaming companies has gone up from 25 in 2010 to 275 and now employ 15,000 skilled developers.
The Centre and state governments have their own interpretation of the issue of gaming and the social impact it may have. Parental control is being passed on to the tool ie. e-gaming. Addictions like alcohol are also being attributed to e-gaming, but banning it is not a solution. There can be two approaches to controlling e-gaming, technical filters and social education.
Inter-Ministerial Task Force for E-gaming The constitution of the Inter-Ministerial Task Force for E-Gaming (IMTF) is a welcome step with the MeiTY (Union Ministry of Electronics and Information Technology) in the driver's seat getting inputs from all stakeholders in e-games. Among the issues the IMTF must address at the outset is an agreed definition of "electronic games". That in turn leads to other issues that need to be understood and addressed, such as the following:
Clarity is needed on whether e-gaming is a game of chance or of skill
● Based on (a) what should be the direct and indirect tax regime?
What determines the outcome, broadcast with predesigned outcome or the knowledge and skill of players?
Is e-gaming an entertainment, amusement or recreation to hone skills and knowledge?
• Is it just a platform that enables field games to pay in the electronic mode or is it a Product?
● Does the platform work as an intermediary or publish content and broadcast?
What are the social apprehensions on gaming being addictive, spending in terms of time and money at the cost of other options? etc.
The clarity on the six issues mentioned is paramount, as that will decide the direction of regulations, direct and indirect taxation and the future spread of e-gaming in India. It can grow to be an opportunity for a sustainable and high level of employment, a tool to educate players on the rules of the game, to bridge the digital divide and enable honing of skills.
This story is from the December 31, 2022 edition of Businessworld India.
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