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Tag: E-Gaming Federation

  • EGF levels up comms game with Gaurav Shangari as policy outreach lead

    EGF levels up comms game with Gaurav Shangari as policy outreach lead

    MUMBAI: In India’s fast-evolving gaming arena, the E-Gaming Federation (EGF) has just played a power move appointing Gaurav Shangari as its new director of policy Communication & Outreach. A seasoned communications strategist with over 15 years’ experience, Shangari steps into the role to spearhead EGF’s policy messaging, media relations, and ecosystem outreach at a time when the online skill gaming industry is battling regulatory headwinds while chasing explosive growth.

    Previously a Avian We group business director at Shangari led ESG, sustainability, and policy communication for big names like Pepsico India, Wadhwani Foundation, Godrej Enterprises group, and The Convergence Foundation.

    “With Gaurav, we’re strengthening our ability to shape a forward-looking narrative for gaming and engage more deeply with policymakers, media, and civil society,” said EGF CEO Anuraag Saxena. “His track record in driving impactful campaigns will be pivotal in advancing our mission of integrity and innovation in gaming.”

    For Shangari, this is more than a corporate posting, it’s personal. “This is a landmark era for India’s gaming landscape,” he said. “As both a gamer and a communications practitioner, I look forward to shaping gaming’s role as a driver of India’s digital economy, powered by creativity and skill.”

    Backed by Shangari’s storytelling playbook, EGF is doubling down on its quest to create a safe, trusted, and well-regulated online gaming ecosystem. And if the industry is gearing up for its next big leap, the Federation clearly wants the narrative to sound as sharp as the gameplay.
     

  • India boasts 442 million online gamers: Thornton Bharat & E-Gaming Federation report

    India boasts 442 million online gamers: Thornton Bharat & E-Gaming Federation report

    Mumbai: A report by Thornton Bharat and the E-Gaming Federation, titled “Guardians of Safe Play: Ethical Gaming for Vibrant Bharat,” revealed that India now boasts 442 million online gamers, making it the second-largest gaming market globally, just behind China. The industry is anticipated to grow by 20 per cent by FY25, reaching Rs 253 billion. This report showcased the importance of a strong code of conduct and self-regulation for the sustainable development of the gaming sector.

    The real money gaming (RMG) segment is highlighted as a major revenue driver, with users spending an average of 8.5 hours per week in FY22. Despite facing challenges in 2023 due to the government’s 28 per cent GST implementation, investor sentiment in the RMG sector remains positive.

    The report mainly dug deeper into the regulatory framework governing the real money gaming (RMG) sector, clearly distinguishing between games of skill and games of chance. It offers an overview of key legislative milestones, such as the Public Gambling Act and the Information Technology (Intermediary Guidelines and Digital Media Ethics Code), which have influenced current RMG policies. This highlights the pressing need to update laws and create clear, cohesive guidelines to effectively manage the complexities of the RMG sector.

    Despite the challenges faced by the government’s implementation of a 28 per cent GST, which resulted in the closure of several niche gaming startups last year, the gaming industry has experienced significant growth. To understand the reasons behind this surge, Indiantelevision.com reached out to STAN CEO & founder Parth Chadha who provided detailed insights.

    He explained, “The Indian gaming industry has stood firm despite the challenges posed by the 28 per cent GST on the real money gaming sector. Several factors contribute to this boom:

    Digital infrastructure expansion in India: India has witnessed rapid expansion of digital infrastructure, including widespread access to smartphones that has significantly bolstered the growth of the Indian Gaming industry providing people the flexibility and ease of playing games on their phones like never before. It has significantly increased growth & engagement.

    Advent of gaming communities: The presence of vibrant gaming communities has always been a true game changer for the industry. For example, STAN, the fastest-growing community startup in India provides a chance to hang out, watch videos together, play games, and win rewards at STAN clubs. These social communities foster rapid growth and expansion by appealing to a broad audience.

    Government support: Government Initiatives like Digital India to transform India into a digitally empowered society & knowledge economy have been an instrumental part of the industry growth. Additionally, as per the Invest India Report,  The Indian government allows 100% FDI in the online gaming sector, making it an attractive proposition for investors. This support is crucial for the industry’s development and expansion.

    With these factors in play, India holds significant potential to become a hub for developing and providing platforms for online gaming.”

    He further elaborated, “We at Stan fully support the recent Thornton Bharat and EGF report, which highlights the importance of regulatory mechanisms to protect players from cyber threats, fraud, and other unfair practices. In the gaming sector, ensuring player protection and upholding consumer rights are the most important factors to the integrity and future growth of the gaming industry.  With 442 million online gamers, India now stands as the second largest country with such a massive gaming user base. It is truly a proud moment for all the gaming community stakeholders. We are on the path of rapid expansion, and implementing a code of conduct and self-regulation becomes paramount for the gaming industry. We believe that gaming communities in India are the key driving factor to further bolster India’s gaming system altogether at a new extent.

    Gaming in India has become one of the popular sources of income for youth that was considered as a mere timepass earlier.  Gaming communities foster a sense of belonging among players, enhancing social interactions, and encouraging collaboration and competition. We are proud to share that our platform has recorded an impressive 10 million+ downloads of the STAN app within just two years, making STAN India’s fastest-growing gaming community startup in India,” he concluded.

  • E – Gaming Federation appoints Anuraag Saxena as the new CEO

    E – Gaming Federation appoints Anuraag Saxena as the new CEO

    Mumbai: E-Gaming Federation (EGF), an organization representing top online skill gaming operators in India announced Anuraag Saxena as its new chief executive officer (CEO), effective 1 November 2023. As the new strategic leader, Anuraag will lead the management and policy advocacy initiatives at EGF and work closely with EGF’s member stakeholders to build a safe, responsible, fair, and transparent environment for the online skill gaming industry.

    Anuraag is a nominated member of the National Tourism Advisory Council, a Board member at the Centre for Insolvency and Financial Laws, and has advised corporates and NGOs on their outreach, advocacy, and public affairs. A Chartered Accountant (India) and an MBA (USA), he has spent over two decades with organizations like GE Capital, Prudential Assurance, Deutsche Bank, and Credit Suisse, in senior management and advisory roles.

    His strategic acumen, experience with internationalization, diverse knowledge of emerging industries, and deep-rooted understanding of government affairs will be significant in navigating EGF through the ever-changing landscape of the online skill gaming sector. Anuraag’s work has been featured in the Washington Post, BBC, The Diplomat, Times of India, Financial Express, Sunday Guardian, The Organiser, and SPAN.

    EGF CEO Anuraag Saxena, said, “The Indian online skill gaming industry is both dynamic and challenging, and there could not be a better time to be in this rapidly evolving sector. We are deeply enthused by the Hon’ble PM Narendra Modi’s clarion call for the AVGC sector to emerge as critical to India’s digital future and economic progress. It is a great time to build the online gaming ecosystem while encouraging responsible gaming. I look forward to working with varied stakeholders and continuing to build on the strong momentum of EGF.”

    “We are excited about Anuraag joining EGF and leading the Federation into the next chapter of its development. His strategic knowledge and proven track record of delivering transformation programs make him a formidable force for the organization. With his transformational leadership and credibility as a policy thought leader, EGF is poised to scale up its contribution to the Indian online skill gaming industry,” said  EGF secretary Malay Shukla.

    In his previous roles, Anuraag has co-founded the world’s largest crowdsourced heritage-recovery platform; and brought the ‘World Toilet Summit’ to partner with the Swacch Bharat initiative in India in partnership with WTO, multilateral agencies, and the Govt. of India. 

  • Unlocking the impact of the 28-cent GST levy on online gaming, horse racing, and casino activities

    Unlocking the impact of the 28-cent GST levy on online gaming, horse racing, and casino activities

    Mumbai: In recent developments, the GST Council, a body responsible for making crucial decisions regarding India’s Goods and Services Tax regime has made a significant announcement, reshaping the landscape of taxation in India. The council’s decision to impose a 28 per cent Goods and Services Tax (GST) levy on the entire value of online gaming, horse racing, and casino activities has sent ripples through various industries. This move has far-reaching implications, not only for businesses involved in these activities but also for the broader economy. In this article, we delve into the intricacies of this tax revision, exploring its implications and potential consequences for the gaming and entertainment sectors.

    Before the implementation of GST, the taxation and regulatory landscape for online gaming, horse racing, and casino activities in India was marked by a lack of uniformity and consistency. Different states had different rules and tax rates, creating challenges for businesses operating in these sectors. The introduction of GST aimed to bring about a more standardized and streamlined taxation system for these industries across the country.

    Potential Implications for Consumers

    As these industries adjust to the new GST levy, consumers may also feel the impact. The 28 per cent tax rate could lead to higher costs for online gaming, horse racing bets, and casino visits. This may prompt some consumers to reconsider their entertainment choices or allocate their budgets differently. While it may pose challenges for businesses and consumers, it’s essential to adapt and navigate these changes effectively.

    Here are some views on the topic by industry experts…

    Edited excerpts

    Skyesports founder and CEOShiva Nandy:

    “The 28 per cent GST on online gaming only applies to real-money gaming in which players pay money to participate. As India’s leading esports tournament organizer with a goal of elevating esports from the grassroots, all our competitions are open with no entry fee. Thus, the new GST laws don’t apply to us and make no difference in our operations.”

    Revenant Esports founder and CEO Rohit Jagasia:

    “Only a year ago with the bans on Free Fire and BGMI, the Indian esports scenario was struggling with a dearth of options for mobile gamers. I applaud Garena in their efforts to bring Free Fire India and already make a commitment towards esports which will be a big boost to welcoming old and new players alike. While we don’t currently have an esports roster in the game, we are always on the lookout for potential titles to enter and Free Fire is certainly one on our radar.”

    Esports Federation of India (ESFI) president & acting director general of the Olympic Council of Asia Vinod Tiwari

    “It is imperative first to understand that the 28 per cent GST is going to be applicable to the iGaming sector, including Real Money Gaming (RMG), fantasy sports, teen patti, rummy, and poker which are categorised under gambling or betting in the rest of the world. Contrary to some media reports, this GST is neither applicable nor will it have any impact on the ‘Video Games’ or the Esports industry.”

    “Esports has been officially recognised as a sport by the government which finally and thankfully distinguishes it from any and all activities like iGaming such as fantasy, teen patti, rummy, poker, betting, and gambling, among others. It will carry on to be taxed the way it always has been. Theories of ‘game of skill’ and ‘game of chance’ which only exist in our country neither apply nor are relevant in the Esports ecosystem,” said Tiwari.

    E-Gaming Federation secretary Malay Kumar Shukla:

    “This is an extremely unfortunate decision as charging a 28 per cent tax on full face value will lead to a nearly 1000 per cent increase in taxation and prove catastrophic for the industry. A tax burden where taxes exceed revenues will not only make the online gaming industry unviable but also boost black-market operators at the expense of legitimate tax-paying players, further undermining the industry’s image and capacity to survive. It is in addition to the loss of employment opportunities and the huge impact on marquee investors who are heavily invested in this sunrise sector. Furthermore, online gaming is different from gambling, and the Supreme Court and various High Court decisions have reaffirmed the status of online skill-based games as legitimate business activity protected as a fundamental right under the Indian constitution. While the industry was quite optimistic with the new developments including amendments to the IT rules and implementation of TDS on net winnings, all this will be moot if the industry is not supported by a progressive GST regime. We will wait for further details to assess the situation and evaluate our approach.”

    PlayerzPot co-founder & director Mitesh Gangar:

    “The GST council’s decision to levy 28 per cent GST on total face value on online gaming will corner the gaming industry in a big way. The overall operations will not be feasible. The high tax burden will completely restrict the cash flow, limiting a company’s ability to invest in research, innovation, expansion or survival. The higher burden will also put a blocker on India’s massive gaming industry and deter new players from entering the industry. The rising gaming economy will take a big hit and trigger economic stress, restrict job creation and curtail economic growth within the sector.”

    Qlan co-founder and CEO Sagar Nair:

    “The decision of the GST council to impose a 28 per cent tax will have a significant impact on the online gaming industry, which unfortunately includes the Esports community. While we understand that the government needs to impose such measures on casinos, horse racing, and gambling, the higher tax rate is not justified for the competitive gaming community. It can discourage new players from entering the market as their hard-earned earnings generated through their efforts just like mainstream athletes will be taxed on the same level as those involved in gambling and other such practices. For the Esports industry to continue its unprecedented growth and recognition on the international stage, it is vital for the government to treat Esports as a separate category with reasonable tax rates that would support the development of the sector.”

    Alpha Zegus founder & director Rohit Agarwal:

    “Yet again, esports being included in the same domain as online gaming, horse racing, and casino, has put our industry at a major disadvantage. While the government might have fair reasons to impose higher GST on horse racing and casino winnings, imposing the same rules on an industry like esports doesn’t seem fair. Esports does not only have a ‘win or lose’ situation based on luck but also has a very big element of skill that determines the outcome of the game. This is not what I expected, and our fight to separate esports from other labels still continues.”

    IndiaPlays COO Aaditya Shah:

    “The GST council’s recent stance is both surprising and disappointing. Despite the government’s previous positive steps and clarifications regarding the skill-based gaming industry, such as clarification about TDS on winnings and establishing self-regulatory bodies, this new decision contradicts and undermines those efforts. As of 2022, the revenue generated by the Indian online gaming industry has already surpassed $2.8 billion, and it is projected to reach $5 billion by 2025, indicating an annual growth rate of 28-30 per cent. The number of gamers in India currently stands at 420 million, and this figure is expected to experience exponential growth by 2025. Additionally, there are approximately over 1,300 gaming startups in India, highlighting the industry’s potential for unlocking further growth. However, imposing a 28 per cent GST on anything other than our gross revenue will have adverse consequences. It would be highly unjust to burden the industry with such a significant tax. Not only would this decision impede the industry’s progress, but it would also put millions of jobs at risk.”

    AIGF Spokesperson said,

    “A vast majority of online gaming companies fall within the MSME sector. With over 400 per cent increase in GST liability under the new tax regime, many entrepreneurs who had innovated in the sector would be disproportionately impacted with companies paying more in taxes than they would be generating in revenue. Since the decision, some companies have announced their closure or wide spread layoffs and we believe this trend will only increase in the coming months. While the decision might have been undertaken with a view to increase revenues to the exchequer, its impact might in fact see a fall in revenues as well as company valuations.”

     

  • Industry bodies raises concern over revised GST rates in online gaming

    Industry bodies raises concern over revised GST rates in online gaming

    Mumbai: The three largest online skill gaming associations in the country, E-Gaming Federation (EGF), All India Gaming Federation (AIGF) and Federation of Indian Fantasy Sports (FIFS), expressed concern at the recent media reports, which suggest that the GST rate on online skill games may be increased from existing 18 per cent to 28 per cent.

    In an official statement released, the three industry bodies said that what is more worrying is some media reports suggesting that the tax may be levied on total pool (prize money pooled plus the platform commission) and not on gross gaming revenue (GGR). The latter, if implemented, they said, will mean the demise of the online skill gaming industry in India.

    EGF CEO Sameer Barde said, “Such a step is not only in dissonance with international best practices but is also violative of the principles of GST. Essentially, the online skill gaming operators are platforms, which bring players from various geographies together. The money pooled is eventually distributed to the winning player. The platform charges a predetermined fee, known as GGR, and pays tax on that. If you were to charge an increased tax rate on the entire quantum (pooled money plus commission), it is not only principally incorrect but will also annihilate this sunrise sector.”

    Highlighting that the sector has immense economic benefits, the industry associations appealed to the GST Council to understand the salience of games of skill and take a decision considering international taxation best practices.

    “Global studies have shown that incidence of taxation, on prize money instead of gaming revenue, leads to reduced tax collections for the exchequer and ends up giving a fillip to the black-market operators at the expense of legitimate tax paying players,” said FIFS CEO Anwar Shirpurwala. He further added that any regulations or taxation related to skill gaming should not be treated at par with games of chance, as these are very divergent activities both in terms of law and in practice.

    With a combined membership of around 100 operators, between them, EGF, AIGF and FIFS, represent more than 90 per cent of the online skill gaming market in India. In the last few years, the online skill gaming sector has emerged as a growth engine for the Indian economy with direct benefits to a lot of sectors such as fintech, sports, animation & graphics, semiconductor, edtech and software development. The sector has also witnessed investments from marquee global venture capital and private equity firms. In the last six years, the online skill gaming sector has received foreign investment of over two billion dollars. The sector already employs around 50,000 people.

    AIGF CEO Roland Landers said, “At one level the sector is very upbeat at the prospect of contributing towards growth of the Indian economy. We are very encouraged by the encouragement shown by the government, through formation of AVGC task force, constitution of inter-ministerial task force and the recent initiatives by MeITY to engage with the industry. But all this will amount to nothing, if it is not supported by a progressive taxation regime. An increased tax rate, and then levying the tax on the entire contest entry amount (instead of GGR), will be catastrophic for the industry, even nipping its potential in the bud.”

  • E-Gaming Federation urges govt to maintain 18% GST for online skill gaming sector

    E-Gaming Federation urges govt to maintain 18% GST for online skill gaming sector

    MUMBAI: The GST Council reconstituted a Group of Ministers (GoM) in February 2022 to study the GST rates for casinos, racecourses, and online gaming. The panel’s terms of reference stated that it will examine the valuation of services offered by casinos, racecourses, and online gaming portals, as well as the taxability of some casino transactions, all within the context of existing legal provisions and court orders. In addition, if an alternative is recommended, the GoM will investigate any changes that are required in the legal provisions and the administration of such valuation provision. The group will also assess the impact on other similar services, such as the lottery.

    Earlier this month, Meghalaya Chief Minister Conrad Sangma, Convener – GoM held a meeting with other members and officials to discuss various aspects including the possible GST rates for online gaming, valuation modalities for levying the tax, and other technicalities regarding such activities.

    Currently, a tax rate of 18 percent is levied on the commission (Gross Gaming Revenue or GGR) collected by the online gaming platforms for each game that does not involve betting or gambling. This rate is in line with global best practices since online gaming industry tax structures in countries such as the USA, UK, Germany, and Australia, range between 15 percent to 20 percent. In recent years, the online gaming industry has experienced significant growth. The sector generated Rs 115 billion in revenue in 2020, and it is predicted to expand at a CAGR of 38 percent to Rs 384 billion by 2025.

    The contribution to the government exchequer by this industry was 15 to 20 billion in 2020, and the same is expected to reach 35 to 50 billion by 2025.

    If the current taxation regime is revised and charged on stakes rather than gross gaming revenue (GGR), it will prove to be disastrous to the burgeoning potential of the Indian online gaming industry. The hike will raise the tax by over 800 percent – 900 percent and encourage illicit market operations, which will expose players to unscrupulous operators (predominantly offshore), substantially reduce tax revenues for the government, and all but wipe out a legitimate sunrise sector with the potential to generate $25 billion in annual revenues and hundreds of thousands of jobs by 2030.

    E-Gaming Federation (EGF), an organisation representing top online skill gaming operators in India urges the government to consider Gross Gaming Revenues (GGR) for levying GST and keeping the service at an 18 percent slab.

    EGF CEO Sameer Barde said, “A higher tax burden will make the industry unviable. The gaming platform operators will be unable to continue operations at any meaningful level. Growth, innovation, employment opportunities, government revenues and most important responsible and safe gaming will be impacted in a big way. We urge the GoM to consider the industry’s unique needs and recommend the continuance of the current practice of considering GST to be paid on GGR, with the rate remaining at 18 percent. As online gaming is different from gambling and the Supreme Court and several High Courts have reaffirmed the status of skill-based games as legitimate business activity, rational tax treatment of online skill gaming will help in creating mutually benefitting situations for all the stakeholders.”

    EGF added that PM Modi endorsed India’s gaming industry as a potential world leader, emphasising on the industry’s socioeconomic and cultural importance in today’s globalised and digitised economy. The sector received further impetus after Finance Minister Nirmala Sitharaman announced the setting up of the Animation, Visual Arts, Gaming and Comics (AVGC) Task Force, in her budget speech this year. “We are witnessing the start of a new era in India’s gaming sector. The fact that the government is supporting the industry is really encouraging. The sector’s true growth story, however, will be determined by progressive and favourable policies that establish best practices and encourage responsible gaming.”

  • Time to bring progressive law, not ban online games: FICCI Gaming Committee

    Time to bring progressive law, not ban online games: FICCI Gaming Committee

    Mumbai: The FICCI Gaming Committee (FGC) has spoken out against statements made by the chief minister of Tamil Nadu to bring an end to online gaming in the state. The FGC has urged the state government to adopt an enabling gaming policy protecting players while ensuring a secure, responsible gaming environment.

    “The FICCI Gaming Committee is committed to supporting the government in establishing a safe gaming environment. However, we would like to reiterate that blanket bans do not ensure player protection but instead, benefits unscrupulous fly-by-night operators and encourages illicit and underground gaming activities leading to detrimental impacts on the very populations the government seeks to protect,” the industry body said in a statement.

    The committee asserted that the need of the hour is a stable regulatory mechanism capturing clear requirements that protect consumers and operations of lawful operators. It has suggested that the government consider regulating this new form of entertainment thereby addressing several issues such as protecting players by providing access to responsible entertainment choices.

    In February 2021 the state government amended the Tamil Nadu Gaming Act, 1930, banning online games, subsequently the Madras high court struck down the law in August 2021 on the basis of multiple Supreme Court decisions taken in the past. Reiterating the protection afforded under the constitution to games of skill.  

    “While we appreciate the intent of the government to protect the users, a wide-ranging ban seems excessive and disproportionate in meeting its objectives,” said FICCI director general Arun Chawla. “It shall also severely impact these new technology-driven legitimate businesses that are generating much-needed jobs and revenues for the state.”

    “Around 420 million players across the country enjoy online gaming as a form of entertainment. To ensure that these players’ experiences are safe, we request the government consider regulating this industry, which would allow only legitimate, legal operators to operate while adhering to strict protocols,” said E-Gaming Federation CEO and FGC convener Sameer Barde. “At EGF, we have set up a self-regulatory framework in the form of a code of conduct ensuring a safe, transparent, and responsible environment for players by our certified members. We look forward to collaborating with the government and offering our expertise to help the state establish a well-regulated and sustainable industry.”

    “The growth of 27 per cent CAGR generated by the online skill gaming industry in 2020 has made it the fastest-growing segment within the Indian M&E sector,” said All India Gaming Federation CEO and FGC convenor Roland Landers. “The sunrise online skill gaming industry is responsible for facilitating 400+ Start-ups in this sector and attracted 400+ million gamers – young Indians providing them viable alternate job opportunities in Esports and other gaming businesses.”

    “All AIGF stakeholders are governed by the skill games charter that ensures global best practices across responsible gaming and gamer protection. It is in the best interests of all concerned that the State Govt works with the skill gaming industry to build a robust regulatory framework to ensure all stakeholders across the ecosystem benefit economically and socially notably taxation revenues gaming and allowance for Indian registered gaming companies to operate in the state,” he added.

    “India has emerged as the largest Fantasy Sports market in the world with over 13 crore Indian sports fans using fantasy sports,” said Federation of Indian Fantasy Sports CEO and FICCI Gaming Committee convener Anwar Shirpurwala. “Fantasy Sports is contributing significantly to the growth of the sports ecosystem in India and also helping Tamil Nadu’s sports fans meaningfully engage with their favourite sports. Our government’s premier think-tank NITI Aayog has recognised fantasy sports as a sunrise sector. Renowned academic institutions such as IIM Bangalore and MIT have applied scientific methodology and concluded that participating in fantasy sports requires significant skill, even higher than the skill required by a mutual fund manager. In addition, various law commissions including the Uttar Pradesh Law Commission and the Law Commission of India have held that games of skill should be exempt from gambling laws. Various high courts including the Rajasthan high court have said that fantasy sports is online sports and entitled to protection under Article 19(1)(g) of the constitution. The view has been further endorsed by the Hon’ble Supreme Court. Considering the above, the industry looks forward to working with the government of Tamil Nadu to create a safe experience for sports fans and enable responsible growth of the industry through regulation.”