E-Gaming Federation (EGF) is an independent not-for-profit organization, established with the aim to protect consumer interest by setting-up cutting-edge voluntary regulatory standards for regulating the online gaming industry in India.
Founded under the Societies Regulation Act, we endeavor to support the smooth functioning of the online gaming ecosystem and provide a safe, fair, and transparent gaming environment that will allow players to enjoy gaming responsibly.
We represent the complete gamut of online gaming operators including two out of three gaming unicorns in India.
To be a unified voice for the online skill gaming industry while creating a safe, responsible, and sustainable gaming environment and facilitating industry growth.
“The skill-based online gaming industry is very dynamic in nature when it comes to changes, growth, and regulation. Despite all the volatility that surrounds the sector, it continues to grow. Being one of the first bricks of this sector and also having witnessed its development over the last 2 decades, we strongly believe and advocate for the need for centrally enforced regulations for real-money skill-based games in India.
Not only will it catalyze the growth of online skill-based gaming but will also quash fraudulent and unethical practices by foreign entities that operate betting and gambling platforms. As a part of EGF, we stand firm along with our peers in supporting and educating stakeholders in the government about the ins and outs of the industry to help them form a robust framework to further policy change.”
“Games of skill have put Gaming on the roadmap for cutting-edge
technology and innovation. The sheer volume of over 400 million gamers
and technology challenges is unparalleled in the startup ecosystem. The
industry, while competitive, has collaborated and done some incredible
work to ensure responsible play.
The results are showing up with revenues in the single-digit billions and a positive view from key government stakeholders who are now focused on progressive regulation. These results are a culmination of years of hard work, by bringing together the best teams and minds, gathering an overwhelming amount of data, and operating with a sense of integrity and responsibility towards all key stakeholders. Games are the cultural fabric that has entertained us for generations.
Sticks and stones have evolved to digital interactive high-definition interfaces, but games like Rummy and Fantasy sports provide entertainment to millions of users and have paved the way for a booming sector. One that employs and elevates tens of thousands of the brightest engineers, data scientists, and artists from around the world. Skill games are here to stay.”
“Recognition of unique characteristics that separate Skill based games
from those of chance by the GST regime is essential for the sector to
flourish and contribute its fair share to the country’s coffers.
Skill-based gaming operators offer technological solutions that provide
users with a value proposition by creating an ecosystem for which a
service fee is charged.
This fee is not dependent on the outcome of the game. For this reason alone, tax calculation should be based on the service fee charged or gross gaming revenue (GGR) and not on the entry fee paid by the user. Encouragement to the sector can only come if policymaking allows for sustainable growth.
An increase in job creation, digital transactions, ethical gaming, and transparency are clear outcomes of well-thought-out gaming laws. Holistically speaking, India’s GST regime should uphold the verdict of the Supreme Court and therefore align to fair taxation – we shouldn’t have a zero-sum game. I do believe that the government through its various arms is beginning to understand the clear demarcation between skill and chance-based games and we should see a positive outcome in the near future.”
Online gaming has grown massively in India powered by advanced new-age technologies, the mobile-first phenomenon, increasing disposable income, affordable smartphones, and growing demand for more immersive entertainment. The sector has gained acceptance as a preferred form of entertainment, making the country one of the world’s biggest markets for online gaming. Its popularity can be gauged readily as India currently has 420 million online gamers as of FY 2021.
Currently valued at an estimated $2.2 billion market, the Indian gaming industry is poised to reach approximately $5 billion by 2025. Although India constitutes just 1% of the global gaming market, it is growing at a CAGR of 38%. The presence of three gaming unicorns among 400+ gaming companies, with 15000+ gaming developers in India indicates the massive potential the industry holds.
Amidst this, it becomes imperative
to design an enabling policy framework to regulate the sector which will ensure
player protection and allow them to play in a responsible, transparent, and safe
environment. In addition, it will bring certainty for new-age entrepreneurs,
propel more unicorns and listings within the country and boost investor
The government has made strides in this direction and 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. Moreover, the central government has held consultations with stakeholders on regulating the online gaming industry. These are great first steps and we hope to see increasing momentum going forward. We believe a clear soft-touch policy will go long way in addressing legal ambiguity and perception issues that have led to extreme reactions like bans in a few states.
Globally, gaming is a well-regulated industry and many countries including the UK, the US, and the EU have developed regulations to ensure that players enjoy this form of entertainment responsibly. Based on these global practices, E-Gaming Federation (EGF) has created a self-regulatory framework in the form of a Code of Conduct to ensure player safety. Our ‘responsible play’ features are intended to ensure a fair and safe online gaming experience that protects players from any adverse consequences of online gaming.
As the sunrise sector moves toward the next level of growth, we, at EGF, strive to facilitate and encourage the adoption of regulations/self-regulations for the smooth functioning of the online gaming ecosystem. We are committed to providing our expertise and full cooperation to the government and policymakers in building a robust regulatory framework that protects consumers and legitimate operators.