Google expands Play Store policy to allow real-money games, to start levying service fee

Jyoti Banthia Updated - January 12, 2024 at 06:48 PM.

The move comes at a time when the real-money gaming sector is grappling with the government’s recently implemented 28 per cent GST tax regime

Tech giant Google will allow more types of real-money gaming apps and daily fantasy sports (DFS) on Play Store in India, Mexico, and Brazil from June this year and also start levying a service fee on them.

“We are pleased that this new approach will provide new business opportunities to developers globally while continuing to prioritise user safety. It also enables developers currently participating in RMG (real money games) pilots in India,” the company said in a blog.

It was evolving the service fee model for real-money gaming apps to ‘reflect the value Google Play provides and to help sustain the Android and Play ecosystems’, Google said.

“We are working closely with developers to ensure our new approach reflects the unique economics and various developer earning models of this industry. For developers already involved in the real-money gaming space, or those looking to expand their involvement, we hope this helps you prepare for the upcoming policy change,” the tech giant added.

The move comes at a time when the real-money gaming sector is grappling with the government’s recently implemented 28 percent Goods and Services Tax (GST) tax regime.

Since September 2022, Google has been running an application-only pilot programme to enable the distribution of DFS and rummy game apps developed by India-incorporated game developers. The pilot was scheduled to end on January 15 but has now been extended.

After June 30, apps and developers who had been accepted into this programme will be able to continue hosting their RMG apps beyond fantasy sports and rummy on the Play Store.

Google plans to expand this policy to users in more countries in the future.

“This decision will help with responsible innovation and provide a bouquet of choices to the Indian consumer. It will especially help MSMEs and new developers/platforms who will be able to compete with established companies and will substantially bring down the user acquisition and other associated costs,” said Roland Lander, CEO, All India Gaming Federation.

Published on January 12, 2024 09:08

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