Google has decided to ease its Play Store policies, expanding opportunities for gaming companies by allowing a broader range of real-money games. The updated policy, scheduled to take effect in June, will permit the inclusion of pay-to-play skill games such as poker and chess, beyond the previously allowed fantasy and rummy categories.
Wider Horizons for Gaming Companies:
The relaxation of Play Store policies signals a positive development for real-money gaming companies like WinZo and MPL, offering them the chance to host an array of pay-to-play skill games on the popular app marketplace. Until now, only fantasy and rummy games were accessible on the platform for companies like Dream11 and Games 24×7.
Impact on Existing Players and New Entrants:
The shift will not only benefit established players in the real-money gaming sector but also create opportunities for new entrants and smaller entities. This change is expected to level the playing field, enabling MSMEs and emerging developers to compete more effectively with established companies.
Google’s Pilot Program and Service Fee Considerations:
Google initiated a pilot program in September 2022, allowing gaming companies to distribute daily fantasy sports (DFS) and rummy apps through Play Store, extending the program to January 15. However, the new policy, set to come into effect on June 30, will broaden the scope to cover various real-money games. Google is also contemplating a new service fee model for these games, with the current service fee ranging from 15-30% on in-app purchases and subscriptions.
Challenges and Expectations:
Despite the positive reception to Google’s decision, industry executives express concerns about the potential fee structure, given the existing burden of a 28% Goods and Services Tax (GST). The hope is that the new approach will foster healthy competition, reduce user acquisition costs, and contribute to the growth of the Indian online gaming industry, where over 70% of revenue is generated by pay-to-play platforms.
Google’s Perspective and Future Plans:
Karan Gambhir, the Director of Global Trust and Safety Partnerships at Google, reassured developers that the company is actively working to ensure the new approach aligns with the unique economics and developer earning models in the gaming industry. Gambhir hinted at forthcoming announcements on the new policy and future expansion plans in the coming months.
Regulatory Compliance and Industry Optimism:
Google emphasised that the inclusion of more real-money games will align with both the country’s regulatory framework and the company’s own policies, prioritising user safety. The gaming industry is hopeful that by June, there will be greater clarity on regulations concerning online gaming firms, and self-regulatory organisations (SROs) may be notified by the government.
Google’s decision to broaden the Play Store’s horizons for real-money games is a game-changer for the Indian online gaming industry. While challenges like the fee structure remain, the move is expected to create a more inclusive and competitive landscape, fostering growth and innovation in the dynamic world of online gaming. As the industry eagerly awaits further details, the future looks promising for both established players and aspiring newcomers in the realm of real-money gaming.
