No Need For Regulations To Oversee Online Gaming In India: PM Modi

Prime Minister Narendra Modi has said that there is no need for any regulations to oversee the online gaming space in India.

He made the comments during a freewheeling chat with the country’s top online gamers, including Tirth Mehta, Mithilesh Patankar, Animesh Agarwal, Anshu Bisht, Naman Mathur, Ganesh Gangadhar, and Payal Dhare.

The full video of the interaction, which was shot at the PM’s residence, was released on Saturday (April 13).

Responding to a suggestion from Agarwal that the government should recognise esports as a mainstream sport, PM Modi said that the space ought to remain free from regulations for it to boom.

“It (esports and gaming) does not require any regulation. It must remain free, only then it will boom,” the PM said.

However, responding to a question from Mathur, who asked if there is any need for online gaming regulations, Modi opined that the space could be uplifted by bringing it under an organised and legal structure.

“There are two things. Either impose restrictions under a law or try to understand the subject and then codify the rules for the space into the country’s law based on the requirements of the industry. This will bring it (online gaming ecosystem) under an organised and legal structure and uplift its reputation,” said Modi.

When Agarwal called for separating real money gaming from skill-based gaming, PM Modi directed the gamer to send the suggestions in writing.

Modi’s comments come at a time when the online gaming space is reeling under the impact of the GST Council’s decision to impose 28% tax levy on the full face value for online gaming, without making a distinction between games of skill and chance. 

The Council’s directive was met with criticism from the industry stakeholders who warned of adverse impact due to the new tax regime. Subsequently, online gaming platforms, including MPL and Hike, culled their workforce, while many others shut operations as hefty tax liabilities loomed over them.

Making matters worse has been the 71 show cause notices, totalling INR 1.12 Lakh Cr, issued to online gaming companies for the financial year 2022-23 (FY23) and FY24 (up to October 2023).

Online gaming startups have claimed that they are being taxed retrospectively. However, the Centre contends that online betting has always attracted 28% GST and that the tax notices are not retrospective in nature. 

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