India’s government to propose blanket ban on real-money gaming

Real-Mani Gaming companies are moving forward to offer blankets on their activities under the new law, real-money gaming companies.

According to a draft seen by TechCunch, the Government of India plans to ban the reality-meaning games on the basis of skills or opportunities, which is verified by the Indian IT ministry and three sources for working closely with the Indian government and real-money gaming companies.

The Online Gaming Act, 2021, has proposed to propose a proposal for the promotion and control of 2021, the law will limit online games associated with real-finance partners and ban both advertising and financial transactions.

“No bank, financial institution or any other person will be involved in any online money gaming service to facilitate financial transactions or to facilitate the approval of funds,” said the draft. “

Real-Mani Gaming has become the biggest revenue driver for India’s online gaming industry, which has earned $ 1.5 billion in the fiscal year 20%-increasing 20% of the year, one year, one every year, one 23%. Recent report By gaming-centric VC firm Lumikai. The firm says that real-money gaming alone had $ 2.5 billion.

However, this sector has come under increasing investigation into public anxiety regarding the loss – including cases where People are reported to have died by suicide After losing money in games in games. The stakeholders of the industry basically blame these events Offshore bets and gambling appWhich continues – and Even expanded – Despite repeatedly claiming the activities of the Federal and State Authority of the State Authority Website block And FrostThe

In 2023, the Government of India Imposed 28% tax on online gaming Real-Mani Play to prevent the play- an art called “disastrous” and “unconstitutional”. Top investors including Tiger Global and Kotak, The Prime Minister called on Modi to reconsiderWarning about the loss of $ 2.5 billion in the Writing-Off. If there are taxes, there are companies The Supreme Court challenged its previous appealThe However it is May rise at 40% Under the new rules, some recent reports are suggested.

The draft law states that real-money gaming companies may face up to three years imprisonment, it can be fined $ 10 million (about $ 115,000) or both. Similarly, celebrities who promote these national games on any media platform can be responsible for a fine of two years imprisonment or $ 5 million (about $ 57,000). The bill also gives the Government of India the power to establish a regulatory authority to monitor its implementation.

The founder of the top Indian Real-Mani Gaming Startup told Techcunch, “If the law enforces, businesses will be shut down,” told TechCrunch not to name the draft not public yet.

Investors are equally concerned about the proposed law, which is expected to be presented to the Indian Parliament soon for debate.

While an investor in Indian real-mani gaming startups has not yet agreed to the record as the proposal has not yet been published by the Indian government, “all the unicorn in this sector is going to be significantly impressed by this step.”

Dream Sports, Games 24 X7 and Winzo are among India’s top real-money gaming startups. Combined, they have collected billions of dollars and made significant income from millions of users. India has the largest number of real-money gaming startups in India, Toward Traxon, then the United States and the United Kingdom.

Although many of these companies also provide non-monetized games, a founder told TechCrunch that real-money gaming is more than 85% of their total income. They did not comment on the record as the draft was not public, but it was anonymously agreed to share their thoughts.

Likewise, some startups have searched out of India to maintain their business in the regulatory challenge in the country. It has not yet rewarded for them, as they currently only produce about 100% of their revenue from India, said the above quoted founder.

This is not the first that New Delhi is looking for real-money gaming control. In 2023, the Government of India Revised 2021, Information Technology (Intermediary Guidelines and Digital Media Ethics Code) to prevent “User Damage” related to real-money games. It proposed to create a self-regulatory body for approval of legitimate games while limiting illegal betting and gambling. However, The model of self-control has diminished Due to conflict between the partners of the industry in the application and criteria.

Tuesday was suggested in a local report that India had a cabinet Clear of the proposed bill It was introduced at the parliamentary lower center early Wednesday. However, the Government of India did not confirm the development.

The Indian IT ministry did not respond to any request for comments.