Key Points
Much has changed in the online gaming sector in India over the past few years, especially so in the last year itself where the government has undertaken key measures to provide policy and regulatory clarity for this sunrise industry..
The tech fraternity has also given this industry their vote of confidence as was evident through our recent study where amongst those surveyed, over 84% technology practitioners believed that India could lead the global gaming industry..
In essence, skill-based games are constitutionally protected businesses that fall under the purview of the Centre, while games of chance fall under the jurisdiction of state regulations..
For example, it is worth looking at the Madras High Court judgement (November, 2023) which has overturned a move by the state government to ban skill-based games like rummy and poker under the purview of its Prohibition of Online Gambling & Regulation of Online Games Act..
In line with such arguments, it has been observed in the recent past that skill-based gaming operators have been charged with retrospective taxes at (higher) rates commensurate with the games of chance..
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