Indian group calls for cap on entry fees for games
Indian group – With support from prominent cricket players, a subcontinental obsession, real-money games are becoming increasingly popular. This has led regulatory attempts to fight the risk of addiction as well as stories of financial losses and youth suicides.
According to research firm Redseer, these games might account for up to 53% of the gaming market, which is anticipated to grow to $7 billion by 2026, or three times its size this year.
“Regulation of ticket size is necessary. The price should not exceed 50 rupees. This is a dependency, “said Ashwani Mahajan, a representative of the Swadeshi Jagran Manch, a group that is thought to have a big impact on Indian politics.
He told Reuters, “We will talk to all concerned ministries about this.”
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Even though it is only 62 cents, the proposed cap represents a sizeable chunk of the average 25 rupees, or 31 cents, that 97% of users normally spend on apps like Mobile Premier League.
According to one industry source, the minuscule remaining 3% of users generate 30% of the platform’s income by participating in games with larger ticket sizes.
The organization, the economic arm of the ideological father of the ruling Bharatiya Janata Party (BJP), made its remarks on Tuesday after a government panel suggested deposit and withdrawal limits and advocated for the creation of a new regulatory body.
Despite the fact that the panel’s report did not specify a fee ceiling, four senior gaming industry sources who spoke on the record warned that such a move would have an impact on revenues and the platform growth potential.
They committed to communicating their worries to the authorities.
The government panel was established by the Indian ministry of information technology, and some of the panel’s top representatives from other ministries, including revenue and sports, did not immediately reply to requests for comment.
MPL opted not to respond. Requests for comment from the other two companies did not immediately receive a response.
A standard restriction on deposits “can’t really function,” according to Sameer Barde, CEO of the E-Gaming Federation, a group that includes MPL and Games 24X7, and such limits are “unfair” to players.
According to the panel’s draught, the new federal restrictions are intended to address industry complaints about “inconsistent” state legislation in India, conflicting court decisions regarding which games are regulated by skill or chance, and addiction issues.
A government proposal for a regulator to determine whether a game is based on skill or chance is another concern for the sector.
A standard restriction on deposits “can’t really function,” according to Sameer Barde, CEO of the E-Gaming Federation, a group that includes MPL and Games 24X7, and such limits are “unfair” to players.
According to the panel’s draught, the new federal restrictions are intended to address industry complaints about “inconsistent” state legislation in India, conflicting court decisions regarding which games are regulated by skill or chance, and addiction issues.
A government proposal for a regulator to determine whether a game is based on skill or chance is another concern for the sector.
According to two sources, the Sequoia Capital-backed MPL, which offers roughly 70 real-money games whereas Dream11 only offers seven fantasy sports activities, including cricket and soccer, stands to be more affected by such federal monitoring.
According to Barde, “the majority of the mature industry is quite certain that regulation will only assist.”
However, if approvals take an excessively lengthy time to process, you risk losing relevance in the market at that point.
