[ad_1]
With over 18.9 crore monthly active users and 5.1 crore
daily active users1, it would not be wrong in saying
that online Ludo has become the King – the LUDOKING.
Why is Online Gaming a profitable business in today’s
time? Find the answers in numbers
As the impact of the COVID-19 continues, online gaming industry
is witnessing a profitable increase in the number of its users as
those confined within their houses have sought respite in the
virtual world for entertainment as well as monetary benefits. The
wide availability of hand held devices, deep penetration of
internet in the remotest nooks and corners of India coupled with
factors of social distancing and lockdown have also contributed
significantly to the rapid popularity of the online gaming in India
and across the world. Gaming portals such as Paytm First Games and
Gamerji have reported a 200% and 50% increase in their users of
online gaming portals over March 2020.2 Over half a
million daily active gamers spending 30- 45 minutes on gaming
platforms. According to a KPMG report, India is already the largest
emerging market when it comes to gaming app
downloads.3
Gaming industry is expected to witness a rise in revenue $1.1
billion by 20214. With the viral outbreak having
increasing number of victims and more and more people have found
increased number of users and the online gaming market in India is
expected to rise.
All you need to know about Online gaming
business in India
Is the Profit story true for Gaming Startups as
well?
India’s gaming industry has acquired investment of about USD
350 million from venture capital firms between 2014 and 2020,
growing at rate of 22%, with over 400 gaming Startups in the
nation, according to a report by Maple Capital Advisors titled
‘Gaming – India Story’. As per the said report, the Indian
gaming industry currently valued at USD 930 million and is expected
to grow at 41% annually thereby raising its expected valuation at
USD 3,750 million by 2024.5
Launched last year, Paytm First Games, the gaming arm of the
fintech giant Paytm, has also witnessed a 200% increase in the user
base in the last one month.6 Another startup joining the
club here is Gameberry Labs, whose two games- Parchisi STAR and
Ludo STAR together have seen an over 300% growth in daily
engagement and installation.7 Adda52Rummy is also
following the same path. It has seen a 200 percent increase in new
users8. Ashish, of Adda52Rummy, in an interview given to
online portal, was quoted saying ‘Earlier, people used to play
from 7 pm till 1 am. Now, we are observing that they are playing in
the morning and afternoon hours as well. We have launched new
tournaments for these hours’9
Also read Lockdown: A potential for the Online Gaming
Industry
Key pointers- for game developers
While online games are one of the most loved sources of
entertainment it is essential to ensure that the customer loyalty
as well as new acquisitions continue to ascertain revenue
generation of gaming portals. Some of the key aspects which should
be taken care of while developing the game have been listed as
under:
- New concepts– the developers must focus on enhancing
their creativity while choosing the scheme and themes of their
game. Novel concepts should be adopted so that it creates greater
customer base. - Longer engagement – the developers should develop games
with subjects engaging the users for a longer time. This may be
done by opting for multi-level games, accrual of points/ rewards
and multiple attempts. - Virtual assets– the developers may take recourse to the
development of games including graphics, designs, look and feel and
animation which involve high degree of skills and detailing thereby
attracting greater customer attention. - In-App purchases– the developers may add animated
equipment/ tools/ devices which may be purchased by the users for
real money. With the optimum pricing, this can serve as a media to
increase the profit share for the game developers. - Multiplayer– the developers can engage many users at a
time by permitting multiplayer game scheme. This will allow the
users to advertise about the game by word of mouth this increase
the number of users on the gaming portal. - Personalization– the developers can provide a scope for
the users to personalize their space on the portal. This can be a
source of attracting users who can add their personal touch to the
game within the allocated space. - Skills– the developer must ensure that the games being
developed and offered to the public comprise of substantial degree
of skill. The winner should not be determined by luck or
chance.
On one hand it is mandated under the law to have the winning
outcome dependent on sufficient exercise of labour by the users
while on the other hand skills of varied nature creates interest
amongst the users to choose the developer’s games over all
others available in the market.
What is the law related to Online Gaming in India?
By the virtue of the provisions of the Public Gambling Act,
1867, gambling activities where victory is dependent on the
occurrence/ non-occurrence of an uncertain event are prohibited in
India. The games which base success upon the existence of skill are
known as games of skill. The law in India holds a game to be a game
of skill, even with the element of chance if it depends upon3:
- Superior knowledge;
- Training;
- Attention;
- Experience;
- Adroitness of the player;
- Element of Skill predominates over the element of chance
The Legal framework clearly recognizes that the
games with below elements are not
“gambling“10:
- where success depends on substantial degree of skill; and
- despite there being an element of chance there is requirement
of application of skill.
However, the games involving exercise of a skill of some sort
are permissible to be offered, even for real money except, in few
States such as Assam11, Odisha12 ,
Telangana13
Also read Online Gaming Law in India
Can we get a License for Online Games in India?
Online skill games are not prohibited in most of the States in
India, however the north-eastern State of Nagaland accords legal
validity to the games of skill under the Nagaland Prohibition
of Gambling and Promotion and Regulation of Online Games of Skill
Act, 2016 and the Nagaland Prohibition of Gambling and
Promotion and Regulation of Online Games of Skill Rules, 2016
(hereinafter referred to as the “online game of skills
law”).
The online game of skills law provides legal accreditation to
the games where the users are required to expend their efforts and
skills to emerge out victorious in a game session. Some of the
games for which the said license is issued are Chess, Sudoku, Quiz,
Rummy, Virtual racing, Virtual sports (Soccer/ Cricket/ Archery/
Snooker/ Bridge/ Pool), Fantasy games, etc.
Conclusion
With the gaming spree becoming the new favorite for all, the
potential players may face challenge to stand out amidst their
competitors. The developers need to think out of the box to have
customers diverted towards them and thus enabling them to carryout
successful business operations and at the same time ensure that
there is adherence to the provisions of the applicable laws
pertaining to online gaming in India.
Footnotes
3 https://yourstory.com/2020/03/online-gaming-startups-coronavirus-covid-19
4 report by Google-KPMG- https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/for-indian-gaming-startups-covid-19-lockdown-is-a-boon-for-business/articleshow/75115595.cms?from=mdr
7 Ibid
8 https://yourstory.com/2020/03/online-gaming-startups-coronavirus-covid-19
9 Ibid
10 State of Bombay v. RMD Chamarbaugwala[ A.I.R., 1957
S.C. 699] – held by the Apex Court of India
11 Assam Game and Betting Act, 1970
12 Orissa Prevention of Gambling Act, 1955
13 Telangana Gaming Act 1974
For further information please contact at S.S Rana &
Co. email: info@ssrana.in or call at (+91- 11 4012 3000).
Our website can be accessed at
www.ssrana.in
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
[ad_2]
Source link