ONLINE GAMING LAWS IN INDIA – GAMING LAWS PART I

Online Gaming Laws Online Gaming sector in India has been thriving with activities lately. This sunrise sector has already witnessed exponential growth in its user base especially during the COVID-19 lockdown constituting an average growth of about 28% on year-on year basis. The lucrative Indian Gaming Industry, now being in top five gaming markets globally, is fairly envisioned to provide vast potential in time to come, given the fervor in Indian youth, proliferation of smart phones along with cheap data plans and ease of digital payments. According to a recent study by EY & Assocham, online gaming industry presently contributes over Rs. 2,200 crores of GST and expected to grow to a whopping Rs. 29,000 crores by 2024-25 from Rs. 13,600 crores in 2020-21, revealed a KPMG report. Indian skill gaming sector, which is around Rs. 79 billion in FY 2021-22 and may rise to Rs. 150 billion in FY 2023-24, has contributed Rs. 15 to 20 billion in 2020 to the Government Exchequer and is anticipated to reach Rs. 35 to 50 billion by 2025, claimed another survey. However, the nascent Gaming Sector in India has been facing numerous regulatory and legislative hurdles in recent times with various State Governments banning some games within their territories and the imposition of higher taxes with Central Government tweaking the tax rates and allied provisions. The separation of power between the Centre and the States to legislate has been envisaged by virtue of Schedule 7 of the Constitution of India. Betting and gambling in all forms fall in the domain of the legislative powers of the States.