The size of the India gaming industry is projected to be $3.49 billion in 2024 and is projected to increase at a compound annual growth rate (CAGR) of 15.68% to reach $7.24 billion by 2029.
India, which has one of the largest youth populations in the world, is expected to be among the top market locations for the gaming business. One of the main reasons propelling the nation’s market growth rate is the expanding IT infrastructure, which is being fueled by the growing use of smartphones and high-speed internet.
SOG Federation: Regulating India’s Online Gaming Landscape
In India, the online gaming business is now subject to regulations thanks to the foundation of the SOG Federation. Steering the sector towards responsible growth and unlocking India’s immense potential in the global gaming environment, the federation is well-positioned with the former secretary of the Government of India; Shankar Aggarwal at the leadership, backed by distinguished board members that include former government officials and legal luminaries.
Also Read:Skillhub Online Games Federation: Creating Awareness Towards Online Gaming
SOG Federation President’s Proposal for Tax Reform in India’s Gaming Sector
Following the general elections, the president of the SOG Federation; Shankar Aggarwal intends to approach the incoming government and ask for a reduction in the Goods and Services Tax (GST). Rather than using the entire face value, they suggest basing the tax on the Gross Gaming Revenue (GGR). The premise of this plan is that entrepreneurs in the industry cannot afford the high tax rate that is in place at the moment.
Shankar Aggarwal said “Taxing the Gross Gaming Revenue instead of the full face value reduces the tax burden on gaming operators. Since the face value includes the player’s stake, which is not entirely profit for the operator, taxing on GGR provides a more accurate reflection of actual earnings”
The SOG Federation President highlighted that high tax rates are a major source of financial difficulties for startups in the gaming industry. The plan is to assist these businesses by lowering their tax burden, freeing them up to make greater investments in expansion, marketing, and innovation. He went on to argue that lowering the GGR tax rate might make the Indian gaming sector more competitive internationally. It might draw in more capital and skilled workers, which would support the industry’s expansion.
Also Read: SOG Federation Aims To Take Forward PM Modi’s Support to Gamers and ESports Industry
SOG Federation President Highlights Challenges & Threats to India’s Gaming Industry and Financial Integrity through Offshore Gaming businesses
SOG Federation President, Shankar Aggarwal highlights Challenges & threats to India’s gaming sector through offshore gaming platforms.
Offshore gaming platforms will hinder the expansion of domestic companies and render them unsustainable. “The offshore gaming businesses, which are not even registered in India, are a greater nuisance. The massive tax revenue avoidance and financial outflows caused by the offshore gaming enterprises”, he claimed.
Numerous offshore companies that pose as legitimate businesses engage in money laundering and gaming. These sites gather money in dummy accounts, which they subsequently move through cryptocurrencies, hawala, and other illicit methods. According to the data from GOI, 114 illegitimate betting and gambling platforms are active in India.
