The Daily Fantasy Sports (DFS) industry in India, which includes companies like Dream Sports (Dream11) and Mobile Premier League (MPL), seems to have taken a major stride in its battle against Google.
The Android maker on Thursday (8th September) released a new set of guidelines for the Play Store announcing that it is launching a pilot program, allowing the distribution of the Indian Fantasy Sports applications through the Play Store.
Google had earlier maintained its hard-line stance of excluding the Indian Fantasy Sports apps from its platform due to its gambling policies. The Indian Fantasy Sports platforms had argued that multiple courts in India (including the Supreme Court of India) have already ruled Daily Fantasy Sports (DFS) as ‘games of skill’, thereby separating them from gambling.
Google’s pilot will begin on 28th September 2022 and will run for a year (28th September 2023), during which developers of DFS can list on Play Store if they fulfill certain conditions. These include rules like being incorporated in India and having precautions in place like age verification to prohibit children from using it.
The development comes at a time when online fantasy sports gaming is under the limelight In India, owing to its enormous outreach and possible GST taxation. Google Play Store is one of the biggest app marketplaces in the world.
Reaction by the people from the Indian Fantasy Sports Industry
“Google Play Store finally allowing fantasy sports & rummy apps is a progressive step. Even though it is just a pilot for one year, but with all the legal uncertainty around this industry, definitely a good news for both fantasy platforms & the DFS players” said Peeyush Sharma, one of India’s most followed Fantasy Sports Experts.
“The decision is a welcome one. The Fantasy Sports field has been growing for some time now, giving a way of income to many in the country. Though this also attracts attention from the taxation angle, I hope the government understands and encourages this field rather than taxing it at higher tax slab rates” said Nikhil (@CricCrazyNIKS), one of India’s most active Fantasy Sports Twitter handles.
“Google has finally realized that it can not afford to exclude this massive and rapidly growing sector just because of the prejudices that it has. Fantasy Sports are a game of skills, and their stunning growth was already forecasted long back. This move will only help in solidifying the cause and prosper the growth of the sector even more” said Arjun Kumar, a popular Fantasy Cricket Expert.
“It would be incredible for the Indian Fantasy Sports Industry as per their market expansion process. This will help them to expand rapidly among the larger audience base,” said Kartik Vyas, another Fantasy Sports expert.
Tussle between Google Play Store & Indian Fantasy Sports Apps
In September 2020, Google kicked up a controversy when it temporarily suspended the Paytm app for promoting its Fantasy Sports service called Paytm First Games.
The US tech giant and Indian fantasy platforms like Dream11 have been engaged in a longstanding conflict on this issue of listing. The gambling policies for Google’s Play Store excluded these companies from distributing their apps to Android users through Google’s platform, even as Apple’s App Store allowed them to do so.
Process to get listed on Google Play Store
The Indian Fantasy Sports developers will have to complete and submit an application form if they want to take part in this program. But, there is no assurance that you will be eligible for this program even after applying. Google has asserted that it will first evaluate application forms and then announce suitable applicants of the result within 7 business days of form submission.
Valuation of the Indian Fantasy Sports Industry
The Fantasy Sports industry in India has a user base of around 13 crore — the highest anywhere in the world. The Indian Fantasy Sports industry is projected to grow from Rs 34,600 crore in FY21 to an estimated Rs 1,65,000 crore by FY25, as per a report by the Federation of Indian Fantasy Sport (FIFS) and Deloitte.
Another factor that forced google to change its long-standing stance is the massive rise of the industry in the recent past. Despite such apps not being on Google’s Play Store so far, the sector has seen three start-ups — Dream11, Mobile Premier League, and Games 24×7 — turn unicorns, i.e. private companies with a valuation of $1 billion or more.
According to a source briefed on the matter, Google has chosen to allow Indian Fantasy Sports apps as part of the pilot program “because of the rapidly evolving nature of the fantasy gaming industry in the country”.
Considering the huge market, rapid growth, and valuation of this industry, this move by Google was around the corner. The decision will not only help the Indian Fantasy Sports apps to prosper but may also turn out to be a vital reason behind the crucial contribution to the Indian economy through taxes via this sector.