Google is planning to expand its Play Store policy to support a wider array of real-money gaming (RMG) apps in India, Mexico, and Brazil, starting in June 2024. This move signifies a major shift in the tech giant's stance towards RMG apps, which involve users betting and winning real money. The decision follows a pilot program Google initiated in September 2022, which allowed Daily Fantasy Sports (DFS) and Rummy apps on the Play Store for users in India.
Based on the "learnings from the pilots and positive feedback from users and developers", Google plans to support more RMG apps, including those "not covered by an existing licensing framework". This indicates a broader acceptance of various RMG formats beyond just DFS and Rummy. The company aims to launch this expanded RMG support for developers in India, Mexico, and Brazil initially, with plans to extend it to more countries in the future.
Previously, the availability of RMG apps was limited as they were primarily distributed through sideloading, requiring users to manually install the apps using APK files. This restricted the reach of RMG apps and developers, who had long advocated for a policy change from Google. By allowing RMG apps on the Play Store, Google is expected to provide a significant boost to the Indian RMG industry, particularly benefiting MSMEs and new developers by increasing their reach and reducing user acquisition costs.
Google is extending the grace period for pilot apps participating in the DFS and Rummy distribution program in India until June 30, 2024, when the new policy takes effect. After this date, developers can distribute RMG apps on Google Play to users in India, beyond DFS and Rummy, in compliance with local laws and Google's updated policy.
Furthermore, Google will introduce a service fee model for real-money games, aiming to "reflect the value Google Play provides and to help sustain the Android and Play ecosystems". The company is collaborating with developers to ensure the new approach aligns with the unique economics and various developer earning models within the RMG industry.
This decision arrives when the RMG sector is navigating the implications of the government's 28 percent Goods and Services Tax (GST) tax regime. Even with these tax implications, the CEO of the All India Gaming Federation (AIGF) believes that Google's policy change will foster responsible innovation and provide more choices to Indian consumers.
Google's initiative to permit more RMG apps on the Play Store is contingent upon adherence to local laws and regulations. In India, gambling applications, especially those based on skill, are not prohibited but are subject to specific regulations. Certain states like Nagaland, Sikkim, and Kerala permit online gambling apps, but with strict regulations, allowing only skill-based games.