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Following GST Hike on ‘Online Gaming’, Video Game Cos Write to Govt Requesting Distinction from Real Money Games

The recent taxation framework makes India the only country to bring together “mutually exclusive categories” of wagering and non-wagering games under a single ‘online gaming’ banner, the companies argued.

The Indian video game industry has once again requested that it be differentiated from the online real money gaming sector, this time in a letter to the government following the recent tax hike on 'online gaming', reviewed by MediaNama. The move comes after the GST Council's decision to tax online gaming with wagering at par with gambling. While the tax hike only impacts games involving wagering on outcomes—like online real money games—and not video games or esports, the move has, at times, been painted as a blow to 'online gaming' as a whole. "We request an audience to share the views of the Video Games industry in detail and seek guidance on the way forward," said the letter co-signed by 45 video game companies. "Our earnest desire is to actively engage in a dialogue to work with the regulators to establish policies that recognize the unique characteristics of Video Games, promote investor confidence, and enable a safe and secure ecosystem for Indian gamers engaging in interactive entertainment arts." Article continues below, you might also want to read: Primary Goal Of 400 Million Indian Video Gamers Is ‘Entertainment’, Not Making Money: Esports Fed On Gaming GST Hike Government Should Clearly Differentiate ‘Online Games’ From E-Sports: E-Sports Players Why The Gaming Industry Wants Regulatory Distinction Between Video Games And Real Money Games Broad approach to 'online games' inconsistent with global approach, hurts domestic video games industry: The letter added that there is a global distinction between wagering games ("iGaming") and non-wagering games ("video games"). Only India has…

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I'm interested in stories that explore how countries use the law to govern technology—and what this tells us about how they perceive tech and its impacts on society. To chat, for feedback, or to leave a tip: aarathi@medianama.com

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