Fantasy sports activities is extra much like the inventory market than playing or betting, says Dream Sports co-founder Harsh Jain.

The emergence of a regulator like SEBI will likely be key for the fast-growing real-money gaming sector, as it might present clear pointers on what firms are allowed and never allowed to do, mentioned Harsh Jain, the co-founder of Dream Sports that operates the fantasy sports activities main Dream11.

“The Government has appointed the IT ministry (MeitY) as the ‘Nodal Ministry’ for the gaming (sector), which is going to pass regulations sometime soon. That will help expedite innovation in sports and sports engagement, because we will have not just the legality, but also a regulated way in which we can have a SEBI” Jain mentioned at a latest trade occasion in Bengaluru.

In April 2023, MeitY had notified gaming-related amendments to the IT Act 2021, that may permit a number of self-regulatory organisations (SROs) to find out whether or not to allow real-money video games to function in India. The ministry is nonetheless but to inform SROs for the sector.

According to experiences, the federal government has now fashioned a bunch of ministers (GoM), together with residence minister Amit Shah, finance minister Nirmala Sitharaman, IT minister Ashwini Vaishnaw and knowledge and broadcasting minister Anurag Thakur, to formulate a complete regulatory framework for the sector.

Jain mentioned that 2023 has been an “amazing year” for them by way of laws. “We’ve been doing this for 15 years but now it’s going to a scale and size where we are very fortunate to have the government come in and regulate this industry” he mentioned.

“Gaming will finally have a body, which can regulate what we can and cannot do in sports to help the sports fan engage with the game in an official manner and allow that to grow even further” he added.

Jain, who can also be at present serving because the chairperson of the premier trade physique Internet and Mobile Association of India (IAMAI), drew a comparability to the market regulator SEBI as a result of he believes that fantasy sports activities is extra akin to the inventory market than playing or betting.

“You can put in money, pick a portfolio of stocks like a team of players and then based on relative performance of that portfolio or that team, one can win or lose money. Betting and gambling is usually based on the outcome of an event. Will India win, or will Australia win?  Will Virat Kohli score 50 or 100. Will Shami take five wickets?  That’s a different genre altogether” he mentioned.

For the fantasy sports activities unicorn Dream11, which not too long ago clocked a milestone of 200 million customers, laws will play an necessary half within the firm’s means to “continue pushing the envelope” to get to the subsequent 200 million customers, he mentioned.

Jain’s feedback come at a time when the nation’s real-money gaming trade is navigating via a turbulent interval posed by the federal government’s new 28 percent goods and services tax (GST) regime which became effective from October 1. The new tax charges are anticipated to hit the revenues and profitability of many firms within the sector.

Dream Sports is anticipated to witness a income drop of 40-50 p.c within the present monetary yr whereas the working revenue might drop by about 80 p.c, sources have instructed Moneycontrol.

Indian tax authorities have additionally served show-cause notices to Dream Sports and different skill-based corporations reminiscent of Gameskraft and Games24x7 for alleged tax evasions to the tune of Rs 1 lakh crore, Moneycontrol reported on October 25, citing a senior authorities official.

Dream Sports has filed a writ petition within the Bombay High Court difficult a present trigger discover issued by tax authorities for alleged GST evasion and non-payment of 28 p.c GST on the face worth of bets, Moneycontrol reported on September 26.