Mobile games are leveling up to allow real cash payouts.
Google recently announced plans to support more real-money gaming (RMG) apps on the Google Play Store in select markets, letting players potentially profit from casual titles.
New Gambling Game in New Markets Opening Up
Currently, Google only allows RMG apps in countries with established licensing frameworks.
However, a successful India pilot since 2021, has prompted expansion into more regions lacking oversight.
Starting in June 2024, Google will enable more RMG apps in India, Mexico, and Brazil, with more countries slated to follow.
This opens the doors to real-money versions of casual genres like trivia, bingo, and puzzle games.
Currently, the Google Play Store allows Rummy and Daily Fantasy Sports RMG games in India.
Players may wager a small fee upfront with the chance to win larger cash rewards based on performance, adding financial stakes to benign gameplay.
Popular examples include titles like RummyCirlce and Swagbucks.
Adhering to Strict Policies
However, Google requires RMG apps to adhere to strict policies around age restrictions, geolocation, and responsible gambling.
Games must prevent underage access and confirm players are in approved regions.
Google is also adjusting its service fee model for RMG apps to accommodate the unique monetization structure.
Specifics remain unannounced, but it may entail reduced rates.
While potentially concerning for some, regulated real-money gaming presents an interesting opportunity to merge entertainment and earnings.
And Google’s selective approach aims to limit risks in eligible regions.
Strick Policy on RMG Games in India
Last year, India imposed a 28% GST on online gaming apps, which came into effect on October 1, 2023.
Online gaming, along with horse racing and casinos, is now considered an “actionable claim” under the GST Act.
This means that a uniform 28% tax will be applied to the full value of bets placed in online games, whether they involve games of skill or chance.
However, this taxation has not been well-received by the industry, as it may make it difficult for both game developers and players to make a profit.
So to attract more RGM developers, Google may need to change its revenue model.