Gaming industry needs regulation, not ban: CEO, E-Gaming Federation

At least 600 million people will be playing online games by 2030, says Sameer Barde

After Tamil Nadu’s governor approved last week an ordinance banning online gambling, industry players have said it is regulation that will work and not prohibitions. Sameer Barde, chief executive officer of E-Gaming Federation, which represents companies like MPL and Games 24X7, spoke to Shine Jacob about the industry’s concerns and its future.

Here are edited excerpts from an interview:

What is the current status of the industry in India?

The industry is growing quite well. The gaming industry in India is growing at about 38 per cent compound annual growth rate. It is showing a lot of potential. In terms of revenue, it is about $2 billion and we anticipate it to be around four times the current size or between $7-8 billion by 2027. We have got about 400-odd start-ups and as the regulatory uncertainty decreases, we anticipate that there will be a lot of investor interest and the number of start ups will also increase.

The current established operators will start scaling up. We have around 450 million players now. Anticipation is that smartphone penetration in India will touch around a billion phones by 2025. We anticipate that 600-650 million people will be playing online games by that time. This will lead to much higher employment generation.

Right now, India is around 1 per cent of the global gaming market. We are the largest untapped market. There is tremendous investor interest. Only thing holding it back is uncertainty regarding regulations and GST.

How many states have banned online games so far?

Currently, there are bans in Odisha, Andhra Pradesh and Telangana and in all these states the matter is sub judice. The ordinance that came out of Tamil Nadu is also there. A legislation banning online games was struck down by the High Court. The state has already approached the Supreme Court with an appeal. Cases are going on in some other states too, against individual players regarding taxation and several other things.

How do you see the debate over games with stakes and skills?

It is a matter of perception. Rummy is a game of skill whether you play it for free or for money, online or offline. It is an established game of skill. Is it a game of skill or game of chance is the question? If it is a game of chance, then it is gambling. There are states like Goa that allow gambling.

What is your take on Tamil Nadu ordinance?

We are in the middle of consultation. It is clear that they [the authorities] consider rummy and poker as gambling. In a couple of days, we will take a final call on how to go about it. Legal course is one of the options before us. We are currently looking into it. We have again written to the government explaining the situation. There is a need for regulation and not ban. If you won’t regulate the existing industry, unscrupulous operators will continue to operate.