In a significant move that could reshape the future of online gaming in India, Google has proposed sweeping changes to its Play Store policies, potentially expanding access to real-money gaming apps. This decision follows ongoing antitrust investigations and demands from local gaming platforms like WinZO. Google’s proposed changes aim to provide more developers with the opportunity to distribute their real-money gaming apps via the Play Store, while also ensuring compliance with local regulations. If approved, this move could have far-reaching implications for the online gaming industry, offering more opportunities for developers, enhancing user safety, and increasing Google’s revenue share from the rapidly growing gaming market in India.
Google’s Proposal: Expanding Real-Money Games Access on the Play Store
The most significant aspect of Google’s proposal is the expansion of real-money online gaming apps on the Play Store in India. Initially, Google had rolled out a pilot program in 2022, which allowed only specific categories of real-money games, including daily fantasy sports and rummy. However, this was met with dissatisfaction from various stakeholders, particularly WinZO, which filed a complaint claiming that the program was discriminatory for excluding other real-money games.
Google’s new proposal seeks to replace this pilot program by allowing all real-money games to be distributed on the Play Store, provided they meet specific requirements. Developers would be required to self-declare their games as permissible online real-money games according to Indian laws and regulations. This move would open up the Play Store to a wider variety of real-money games, allowing developers to reach a more extensive audience within India.
Moreover, developers would need to provide proof that their games are classified as “games of skill” by an authoritative third party. This is a crucial distinction in Indian law, as games of skill are considered legal, while games of chance may be classified as gambling and face strict regulations.
The Role of Third-Party Verification
The proposed changes also emphasise the importance of third-party verification. Developers will need to submit a declaration from an authorised body, confirming that their games qualify as “games of skill.” This step is vital to ensure that the apps comply with local legal frameworks and to avoid any potential issues with law enforcement.
Recognised third parties in this verification process could include industry associations like the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), or the Federation of Indian Fantasy Sports (FIFS). These organisations are already well-established in India’s gaming ecosystem, making them ideal partners to confirm the legality of the games being launched on the Play Store.
This verification system aims to strike a balance between promoting innovation and maintaining user safety, preventing the distribution of illegal gambling apps that could jeopardise the integrity of the Indian online gaming market.
Implications for Developers and the Indian Gaming Market
India’s gaming industry has seen explosive growth in recent years, with real-money gaming accounting for a staggering 86% of the total industry revenue. In 2024, the market is projected to generate ₹274.38 billion ($3 billion). Google’s proposed changes are likely to fuel this growth further, as developers will be able to reach millions of potential users through the Play Store’s vast distribution network.
For developers, these policy changes could open new revenue streams and make it easier to distribute their real-money games through Google’s platform, rather than relying on alternative methods such as APK downloads from third-party websites. The Play Store’s reputation for security and trustworthiness could also lead to greater user confidence in the apps, increasing their success.
Moreover, Google will likely benefit from this move as well. By expanding the number of real-money games available on its platform, the company stands to increase its revenue from app distribution and in-app purchases, as well as advertisements. Given the massive popularity of real-money games in India, this could significantly boost Google’s earnings from the Indian gaming sector.
How Google’s Proposal Could Affect India’s Antitrust Investigation
The proposal comes at a crucial time as Google is facing an ongoing antitrust investigation by the Competition Commission of India (CCI). WinZO, the online gaming platform that initially filed the complaint, argued that Google’s pilot program discriminated against certain types of real-money games, creating an unfair advantage for some developers over others. This complaint led the CCI to launch a formal probe into Google’s Play Store policies.
By proposing to open the Play Store to a broader range of real-money games, Google appears to be attempting to settle this case and address the CCI’s concerns. If the CCI approves the proposal, it would mark a significant step towards resolving the antitrust dispute, as well as demonstrate Google’s commitment to fostering a more inclusive and transparent gaming ecosystem in India.
The regulator’s approval of the proposal could also help restore developer trust in the Play Store, as it shows that Google is willing to adapt its policies better to suit the needs of the Indian gaming community. However, the investigation is still ongoing, and the CCI has yet to determine whether Google’s actions have violated antitrust laws.
Impact on Google’s Advertising Policies
In addition to changes to the Play Store’s app distribution policies, Google has also proposed updates to its advertising policies for real-money gaming apps. The company has suggested that games of skill could be advertised on Google Ads, provided the developers can prove their games are legal according to Indian regulations. This would open up new opportunities for developers to market their games through one of the most widely used advertising platforms in the world.
By allowing these games to be promoted more easily, Google is helping to level the playing field for developers who have previously struggled to gain visibility due to the limitations imposed by the earlier pilot program. The changes could lead to more competition in the real-money gaming market, encouraging innovation and improving the overall quality of the apps available to users.
The Road Ahead: Timeline and Market Impact
Google has stated that it plans to implement these changes within 120 days of the CCI’s approval for the Play Store policy update, while advertising policy updates would take effect within 150 days. These timelines indicate that the company is committed to moving quickly and decisively, provided it receives the necessary regulatory approvals.
In the meantime, developers and stakeholders in the Indian gaming market are closely watching how the CCI responds to Google’s proposal. If the proposal is approved, it could lead to a rapid expansion of real-money games on the Play Store, driving further growth in India’s already booming gaming industry.
By 2029, the Indian gaming market is expected to reach ₹785.51 billion ($8.9 billion), with real-money games accounting for 80% of the total revenue. With this in mind, Google’s proposal could significantly shape the future of online gaming in India, benefiting both developers and players alike.
Conclusion
Google’s proposed changes to its Play Store policies in India are set to transform the landscape of the online gaming industry. By expanding access to real-money games and introducing a transparent system for third-party verification, Google is not only seeking to resolve an antitrust case but also positioning itself to capitalise on India’s rapidly growing gaming market. The changes could have wide-reaching implications, from offering new opportunities for developers to creating a more user-friendly and regulated gaming environment for players.
As the industry continues to evolve, it will be interesting to see how Google’s policies unfold and how the CCI’s investigation plays out. In the meantime, stakeholders in India’s gaming sector are bracing for what could be a landmark moment in the country’s digital economy.
