Google extends pilot for real money games: full story and latest stand

Real money games (RMG) such as rummy and daily fantasy sports (DFS) have grown to become extremely popular in India within the last decade. According to a recent report, there are a whopping 146 million (14.6 crore) RMG players in India. While rummy games have been deemed ‘skill-based’ by the Supreme Court of India, there are many different schools of thought surrounding real money games.

Google Play Store is a global marketplace for the distribution of apps of all kinds; from games to e-books, from music to shopping. Adhering to the regulations set by the Government of India, Google Play Store disallows certain DFS and RMG apps unless they meet the required eligibility conditions.

In this article, we will be discussing the Google Play pilot for real money games and its potential scope in the Indian market.

Google Play pilot: in a nutshell

• Google Play conducted a limited-time pilot programme from 28 Sep 2022 to 28 Sep 2023.
• This pilot aimed to enable the distribution of daily fantasy sports (DFS) and rummy app by developers incorporated in India to users located in India.
• This was an application-only programme.
• Developers were required to fill out a form outlining the market they wished to target, the age restrictions (18+), and ensure the game was appropriately tagged on Google Play (examples of tags are “Games: Casino”, “Games: Card”, “Games: Sports”, “Sports”, or “Entertainment”).
• Should a developer successfully meet the eligibility requirements, the app (DFS/rummy) would then be listed on the Google Play Store for country-wide distribution.
• A grace period till 30 Jun 2024 was given to apps incorporated during the pilot to remain on Google Play Store.
• Google also cancelled the service fee it planned to levy on the existing real money gaming apps on the Play Store.

Eligibility criteria for DFS/rummy apps

Aside from the basic requirements for eligibility–which include having a government-approved license and barring usage of the app in banned territories)–Google Play Store has stringent policies regarding apps that advertise monetary gains:

• The developer must successfully complete the application process in order to distribute the app on Google Play.
• The app must prevent underage users (below 18 years of age in India) from using the app.
• The app must NOT be purchasable as a paid app on Google Play, nor use Google Play In-app Billing.
• The app must be free to download and install from the Google Play store
• The app must be rated A/O (Adult Only) or 18+.
• The app and its app listing must clearly display information about responsible gaming.
• The app will have user verification to validate the following:
  • Age: Ensure that only individuals over 18 are registered on the app.
  • Address: Ensure that only individuals residing in states where the game on offer is permitted are able to participate in the money-based game or contest.
  • Permanent Account Number (PAN) card details: For tax compliance at the time of money withdrawal.

💡Source: Google Policy Center

Challenges faced by Google Play Store

While Google Play Store aimed to eventually open its doors to all compliant DFS/RMG apps, the pilot came to a pause due to:

1. Lack of a central licensing framework: Being a somewhat legally turbulent territory, there is no definite central authority that identifies permissible and legal RMGs in the country.
2. New GST policy: Introduced in 2023, the new GST policy levying a 28% tax on real money games caused a halt in appropriate decision-making.
3. No existing Self-Regulatory Body (SRB) for such apps: Due to the unprecedented nature of this pilot, the Ministry of Electronics and Information Technology (MeitY) took some time in notifying the regulatory framework.

Other pilots by Google Play Store

The Google Play Pilot of DFS/rummy games in India is not a new thing. Google Play Store has been actively working in various countries to support the expansion of real money gaming in compliance with regional laws.

Japan: online crane games (OCG)

You must have a claw machine in arcades. These are also called ‘crane games’, which feature a mechanical claw that a player manoeuvres to grab a prize. In an online crane game (OCG), the player manoeuvres the claw from an app that ‘facilitates remote/online control over gameplay taking place in an actual claw machine game located in an offline gaming arcade’.

Following the completion of a pilot programme for OCG apps in Japan on 11 Jul 2023, Google Play Store now allows the distribution of online crane games on its platform globally, subject to applicable laws.

Mexico: daily fantasy sports (DFS)

From 09 Nov 2022 to 30 Jun 2024, a pilot similar to that in India was launched in Mexico for DFS games. It followed all the same eligibility criteria as listed above, along with an additional requirement: confirmation from Secretaria de Gobernacion de Mexico (SEGOB) stating that a DFS app doesn’t require a license to operate.

The pilot programmes are set to expand to other countries such as Brazil in the near future.

Google Play’s current stand

Google made the following official statement about their pilot programme:

However, expanding [Google Play’s] support of real-money gaming apps in various markets without a central licensing framework has proven more difficult than expected due to several reasons. We’re working hard to develop a thoughtful framework and in the meantime, we’re extending this grace period beyond June 30, 2024. Existing pilot apps can continue to remain on Google Play subject to continued compliance with the program terms.

💡Source: Google Play Console Help

• All apps (DFS/rummy) added during the pilot programme are still available for distribution on the Google Play Store.
• All added apps will remain available on the Play Store as long as they are compliant with its policies related to, but not limited to, country of incorporation (must be developed and incorporated in India), age rating, tagging, and licensing.
• The pilot has officially been extended indefinitely at the time this blog was written.