Google to Allow Real-Money Games on Play Store in India

Google Proposes Policy Changes for Real-Money Gaming Apps in India

Google has put forward significant revisions to its Play Store and advertising guidelines in India. These alterations are intended to facilitate the inclusion of a wider selection of real-money gaming applications on its platforms. This move is directly linked to efforts to resolve an existing antitrust dispute with the Indian gaming platform, WinZO.

Competition Watchdog Review

India’s competition regulator recently released a public notice, inviting feedback on a “commitment proposal” submitted by Google. This proposal details expanded access to the Play Store and revised advertising policies for real-money gaming apps within the South Asian market.

Proposed Changes to Game Distribution

Google intends to supersede its current pilot program by permitting the distribution of all real-money games in India. These games must be “self-declared by developers as permissible online real-money games as per applicable laws/jurisprudence” to qualify for inclusion on Google Play.

Developers will also be obligated to furnish evidence demonstrating that a recognized, independent third-party organization has classified the app as a “game of skill,” according to the proposal.

Background of the Pilot Program

In September 2022, Google initiated a pilot program to allow daily fantasy sports and rummy games on its Play Store in India. This followed a 2021 Supreme Court of India ruling that categorized fantasy sports as “games of skill” – and therefore legally permissible.

WinZO’s Complaint and CCI Investigation

Immediately following the pilot program’s announcement, WinZO lodged a complaint with the Delhi High Court. The complaint alleged that the program was discriminatory due to its exclusion of other real-money games. Subsequently, the Competition Commission of India (CCI) launched a formal investigation into Google’s policies concerning real-money gaming apps in November of last year.

Expansion and Subsequent Pause

In January of the previous year, Google announced plans to broaden support for real-money gaming apps on the Play Store in India, Brazil, and Mexico. However, this expansion was paused in June 2024, with Google stating that apps already included in the 2022 India pilot would continue to be supported.

Updates to Developer Program Policies

In addition to expanding Play Store access, Google has proposed updating its Developer Program Policies to align with these changes. The company also intends to establish a suitable business model for developers of real-money games.

Advertising Policy Revisions

Google also proposes allowing the advertisement of “games of skill” in India, provided that app developers can demonstrate, through third-party verification, that their offerings are indeed games of skill and not gambling.

Acceptable Third-Party Verification Sources

Acceptable third parties for verification could include industry associations like the All India Gaming Federation, E-Gaming Federation, or the Federation of Indian Fantasy Sports.

Implementation Timeline

Google anticipates launching compliant real-money games on its Play Store in India within 120 days of CCI approval. Corresponding changes to advertising policies are expected to take effect within 150 days of the regulator’s order.

Google’s Statement

A Google spokesperson conveyed in a statement to TechCrunch, “We’re pleased the CCI is market testing our proposed framework for real-money games (RMGs) in India.” They further emphasized the company’s commitment to fostering an open and secure ecosystem for RMG apps across Google Play and Google Ads.

Potential Benefits for Google

If accepted by the CCI, the proposal would likely benefit Google by enabling it to generate revenue from a larger range of real-money gaming apps and their associated advertising.

Market Size and Growth

Real-money gaming currently constitutes the dominant segment of India’s online gaming market, accounting for approximately 86% of total revenue – ₹274.38 billion ($3 billion) in 2024. However, its share is projected to decrease slightly to 80% by 2029, as non-real-money games gain traction and the overall market expands to ₹785.51 billion ($8.9 billion).

Impact on App Distribution

Google’s proposal could also provide a boost to developers who currently distribute their apps outside the Play Store, such as through APK files on their own websites. However, the CCI’s investigation into potential discriminatory practices remains ongoing.

Ongoing Antitrust Challenges

This investigation is one of several antitrust challenges Google faces in India. The company has already been penalized for allegedly abusing its dominant position with Android and the Play Store. Google has recently appealed one of these rulings to the Supreme Court, contesting the CCI’s findings. A hearing is scheduled for next month.

Concluding Remarks

“We look forward to continuing to work with the CCI and the wider RMG ecosystem, and are confident our proposed framework will empower Indian developers, grow the digital economy, and prioritize user safety,” stated Google’s spokesperson.