Online Gaming Industry In India Flashcards
Q.What would be the ramifications of the GST Council’s decision to impose a 28% GST on online gaming, horse racing, and casinos?”
Ans : * Positive
1. Increase in revenue.
2. Moral Suasion : might deter the development of gaming addiction .
3. Regulates the industry.
*Negative
1. Impact on FDI
2. May lead to an increase in unlicensed operators .
Q. What is the status and potential of the Online gaming industry in India ?
Ans : 1. Current value : Estimated to be worth $2.5 bn.
2. Projected growth : CAGR of approximately 27% over the next 5 years.
3. User Base : India has the largest fantasy sports market, with a user base of 180 mn.
4. Employment : Employed around 1 lakh people in 2022.
5. FDI : Attracted rupee 15,000 crore in FDI till 2022
Q. What is the need for regulating online gaming in India ?
Ans : 1. To prevent underage gambling .
2. To safeguard the rights of players .
3. To deter money laundering activities.
4. Social issues like poor educational performance, underage users etc .
5. Technological risks like rise of cyber-attacks, financial fraud, etc .
6. Health issues such as stress, anxiety, depression etc .
Q. What are the challenges in regulating online gaming ?
Ans : 1. Jurisdictional dilemma : online gaming is a state subject ( under gambling and betting ) & centre has made MeitY the nodal ministry for online gaming .
2. Moral stand vs Revenue collection dilemma.
3. Protection of the player’s rights : No regulatory framework for grievance redressal of the players.
Q. What are some “Way Forwards” for online gaming in India ?
Ans : 1. Ensure legal clarity and reduced multiplicity of regulation .
2. Ensuring transparency of the online gaming companies.
3. Curbing loss chasing .
