1. Indian Government Imposes Higher Taxes On Online Gaming Companies

The Indian government has levied a 28% goods and services tax on online gaming companies, casinos, and betting on horse racing. Online ‘games of skill’, which are considered legal in India, face a relatively lower tax of 18% on gross gaming revenue, but ‘games of chance’ face the higher tax of 28% on total bet value. However, the line between what constitutes a ‘game of chance’ versus ‘game of skill’ is relatively blurred with conflicting judicial and legislative decisions. This new taxation regime has been met with large-scale criticism from industry stakeholders that primarily include online gaming companies. 

2. New Advisory Against Use Of Trading Data For Virtual Trading And Online Gaming

The National Stock Exchange (“NSE”) has advised its trading members against using stock market data for virtual trading and online games, which involve rewards for predicting stock market moves. The NSE has emphasised that such data should be used solely for legitimate trading purposes. 

3. Indian Government Issues Advisory Against Online Gaming Advertisements

The Indian government, in consultation with various advertising industry stakeholders, has advised all media platforms, including print, TV, and social media, to refrain from publishing advertisements of online real-money gaming platforms, which may constitute direct or surrogate advertising for betting or gambling. This advisory arises in light of on-going debate on qualifying real-money online games as ‘games of skill’ versus ‘games of chance’, with ‘games of chance’ amounting to gambling or betting under various state laws.