New Delhi, October 14 (IANS). India’s online gaming sector is currently valued at $3.1 billion. The online gaming sector has the potential to grow to $60 billion by 2034 amid challenges related to regulation and taxation. This information was given in a report on Monday.
America has made an important contribution to India’s gaming sector. According to the report, out of the total foreign direct investment (FDI) of $2.5 billion, $1.7 billion came from the US alone.
According to Dr. Mukesh Aghi, President and CEO of the United States India Strategic Partnership Forum (USISPF), “This reflects the confidence of global investors in India’s fast-growing gaming market, which is projected to reach $60 billion by 2034. “
90 per cent of this FDI is in the pay-to-play segment, which accounts for 85 per cent of the overall valuation of the sector. However, challenges related to regulation and taxation remain.
According to reports by USISPF and TMT Law Practice, India is known for its high tax rates. For online gaming, players have to pay GST at the rate of 28 percent on their total deposits for all formats.
The report also notes that the United Nations Central Product Classification (UN CPC) defines gaming separately from online gambling.
“With over 600 million gamers, the sector is being rapidly monetized. This presents opportunities for exports. However, for Indian companies to compete globally, we need progressive tax and regulatory policies,” Aghi said. There is a need for a level playing field with policies that are in line with international standards.”
The report looked at the regulatory framework and taxation policies in 12 major gaming markets. It was revealed that all 12 countries have different legal definitions regarding Games of Chance. With this definition the difference regarding skill gaming formats becomes clear.
Abhishek Malhotra, partner, TMT Law Practice, said, “More nuanced regulation and taxation regime similar to the regimes adopted in global markets will not only provide clarity but also promote growth in the online gaming sector.”
–IANS
SKT/ABM
