Tech

Google suspends online gaming trials on Play Store due to lack of regulation

NEW DELHI: Google on Friday suspended its pilot program for listing fantasy sports and rummy games on its mobile app marketplace, Google Play Store, but extended a “grace period” in India, which means Google will not expand wider open access to real-money games on the Play Store as planned in January. Apps already on the Play Store will remain there for the time being.

The trial, which began in July last year and expanded to India, Brazil and Mexico in January, was suspended by Google citing the lack of a “central licensing framework” regulation that would define the legality of such games in each country.

“Expanding support for real-money gaming apps in markets without a central licensing framework has proven more difficult than we anticipated, and we need additional time to do the right thing for the safety of our developer partners and users,” a Google spokesperson said in a statement.

A blow to the online gaming industry

The move is a blow to India's online gaming industry, which remains embroiled in controversy over whether online games qualify as games of skill or chance. Cases against bans on online gaming titles in the states of Tamil Nadu and Karnataka are pending in the Supreme Court.

“Google said it is working on its own framework to define permitted applications in this space. Meanwhile, in India, we are extending the grace period for a pilot program to allow existing apps offering fantasy sports and rummy games in India to remain on the Play Store,” the spokesperson said.

Additionally, a senior Google executive, speaking on condition of anonymity, told Mint that the company intends to create a framework, but that the matter is under ongoing discussion and there is currently no specific timeline for when these apps will be operational again.

Since the launch of Google's pilot program, fantasy and rummy apps from Sporta Technologies (Dream11), Gameskraft, India's largest online gaming company by revenue, and Games24x7 have all been listed on the Play Store. At the time of publication, apps listed and remaining live on the store include Dream11, RummyCulture, RummyCircle, and My11Circle.

Dream11 and Games24x7 declined to comment on the matter.

Regulating Meity

Google's decision to withdraw from the pilot comes after the central government's proposed plan to set up a self-regulatory body (SRB) to certify approved apps failed to materialize. A senior government official told Mint in March that the Ministry of Electronics and Information Technology (Meity), which oversees the sector, is likely to take on the task of regulating the sector itself. However, this is still under discussion within the central government and no decision has been taken yet.

Online gaming industry players expressed disappointment. Roland Landers, CEO of industry group All India Gaming Federation, called the move “arbitrary and anti-competitive” and argued that the company's dominant market share in India could adversely affect the distribution of such apps.

“Google has been actively engaging with the industry over the past year and announced earlier this year that it will onboard all paid skill-based games. The Google Play Store conservatively accounts for over 90% of the app distribution market and has a significant influence and is essential to the Indian mobile market. Discrimination without having a comprehensive policy is a form of gatekeeping and market distortion that limits user choice. We will continue to engage with Google,” Landers said.

The Google executive said the move in all affected regions was a temporary measure, not a withdrawal.

“We had initially expected six months would be sufficient to establish a unique framework, but during our pilot market activities we realised we would need a longer period. We will finalise it as soon as the new dedicated policy framework is ready,” the official said.

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Published Date: 21 June 2024 9:12 PM IST

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