In a major boost for the video gaming industry, the Indian government has decided to separate Real Money Gaming (RMG) from the video gaming sector. The long-standing desire to differentiate between entertainment-focused games and paid games has finally been resolved. The move aims to enable the government to develop more targeted and effective policies for both the RMG industry and the video game industry.
Ministry of Information and Broadcasting (MIB) Secretary Sanjay Jaju addressed the key concerns of game developers during a closed-door roundtable at the 16th Indian Game Developers Conference (IGDC). Developers present in an interview with Storyboard18 said, “The government has decided to clearly separate the RMG industry from the video games sector. I made it clear that I would enter,” he admitted.
Another developer said, “The RMG industry will be supervised by the Ministry of Electronics and Information Technology (MeitY). “I understand that this is not possible,” he added.
Manish Agarwal, director of the Game Developers Association of India, said: “This split was inevitable. The video game and interactive entertainment industry thrives on creative content. As the MIB chief pointed out, the entertainment is at the heart of this industry, so it naturally works with MIB, which also manages other entertainment areas such as OTT platforms, movies, and radio.”
Agarwal further added, “In contrast, the RMG industry operates on a cash-in, cash-out model, leaning more towards technology and app-based transactions than deep narrative-driven content. MeitY will oversee this space. It’s logical to do so.” There are clear regulations for each industry. ”
The developers also urged the government to support education and training efforts in game development at India’s premier institutions.
Sridhar Muppidi, chairman of the Indian Game Developers Association, said, “While there are 6 million game developers in the world, there are only 25,000 in India. Despite the large number of gamers. “There is a lack of talent to take advantage of this opportunity.”
Muppidi further added, “We have requested the government to establish game development schools on par with IITs and introduce game development courses in universities. This will help address the immediate shortage of human resources,” he added.
He also said, “The government should avoid imposing restrictive regulations on the nascent gaming industry. Excessive regulation at this stage may hinder growth. The framework may be subject to review.”
Earlier, on September 6, Storyboard18 reported that the Department for Promotion of Intra-Industry Trade (DPIIT) had written to MIB, MeitY and NITI Aayog asking them to clarify the distinction between games of skill and games of chance. It was reported that. This distinction is crucial in developing policies to formalize 100% foreign direct investment (FDI) in online gaming.
The proposed policy would allow full FDI in online real money gaming, provided that the investment excludes gambling and gambling activities. NITI Aayog, India’s leading policy think tank, is working on establishing these definitions to ensure a robust long-term framework for the gaming ecosystem.
