India can become an online gaming superpower
AIGF CEO Roland Landers throws light on the legal & business aspects of the gaming industry and how a conducive policy will help regulate & tap its potential.
The Indian gaming industry is witnessing multifold growth at a rapid pace and has immense scope to generate employment, business and opportunities in e-sports. CEO of the All India Gaming Federation Mr. Roland Landers speaks on the legal & business aspects of gaming as an industry and how a conducive policy will assist in regulating the industry & tapping its huge potential.
There is a perception among some that mobile gaming is akin to gambling. How are they different?
Just because mobile and online games are played on a transactional basis, it does not mean the gamers are gambling. In the case of online skill-based games, the skill involved outweighs the element of chance. This is a broad definition. Today, online skill games are easily accessible on mobile phones. They include casual e-games, fantasy sports, poker, rummy etc. Games of chance that constitute gambling are slot games, roulette, blackjack etc. These too are easily accessible these days through foreign sites and Apps. In some cases, some skill-based games are offered by offshore operators through their betting and gambling sites to create confusion.
What sort of policy would you like to see framed to regulate mobile gaming in India and Karnataka?
The All India Gaming Federation (AIGF) conducted an outreach campaign recently in Karnataka. The campaign worked well in clearly explaining why the online skill gaming industry needs to be nurtured and how the different States will benefit socially and economically. As a part of the campaign, AIGF had the opportunity to meet relevant stakeholders and presented a representation to the government to discuss the way forward.
Some of the suggestions made include expansion of the existing Animation, Visual Effects, Gaming and Comics (AVGC) Policy to include online skill-based games. We suggested the government should ensure there is a registration process for all operators and their Apps with the nodal government body concerned. The AIGF, its advisory board and stakeholders, can help in this process by identifying operators and their Apps and ensuring compliance. We also suggested creating a process to ensure operators and their platforms operate legally in an environment which will automatically ensure that illegal sites are no longer available to gamers in Karnataka.
Will a conducive policy fuel the growth and development of this segment?
Most definitely. With self-regulation like the one promoted by the AIGF, the industry has been growing at a 30% CAGR over the last three years. A conducive policy will give a major boost to the industry and all the stakeholders, including gamers, operators and the government.
What opportunities does the gaming industry hold in terms of employment and business?
The online gaming segment could offer employment to over 40,000 people by 2022. The size of the business is reflected in the indirect tax collection which is expected to reach Rs 28.60 billion by 2022. This translates to a CAGR of 43 per cent.
Do you see e-sports gaining ground in India?
According to a report by KPMG in 2020, the viewership doubled to 17 million in 2020. KPMG estimates this to exceed 130 million by 2025. The prize pool of e-sports grew by about 25-30 per cent. In 2019, 285 players from India earned around Rs 1.49 crores. As of 2020, India ranks 16th in the world in e-sports. The aggregate revenues of start-ups and companies in India is around USD 68 million.
The future holds a lot for India in e-sports on a global scale including game development. Many indigenous games gave been developed in view of the aatmanirbhar initiatives. E-sports is also creating several career opportunities and the future for this industry looks promising.
What will mobile gaming and e-sports mean for talented enthusiasts in this format?
The industry is compelling and growing phenomenally. It is presenting many opportunities for the talented all over India. The ecosystem is pretty huge and can cover developers, game publishers, professional gamers, tournaments, event organisers, start-ups, investors, software developers, hardware, e-sports cafes and other ancillary industries. There’s also a huge potential yet to be tapped from the perspective of the rights owners, broadcasting and digital media rights etc.
The total funding in Indian gaming start-ups is around USD 450 million. This clearly establishes the opportunity presented by both these industries for talented enthusiasts.
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