Due to the legal ambiguities surrounding online rummy and daily fantasy apps, they usually aren't available on the Google Play Store. (Image credit: Pixabay) Google is changing its long-held stance on disallowing real-money fantasy games on its Play Store in India, as the company has announced a limited period pilot to allow such real-money games like daily fantasy sports (DFS) and rummy apps on its app marketplace. Google said the pilot will be for one year starting September 28, and DFS and rummy apps from developers incorporated in the country will have to apply to get onboarded to the Play Store.
DFS games are those where contestants use their knowledge of athletic events and athletes to select or manage rosters of simulated athletes whose performance directly corresponds with the actual performance of human athletes on sports teams or in sports events. This is a significant move by Google which had so far not allowed such apps on its app store.
The company had maintained such a hard-line against these apps that in 2020 it had temporarily removed payments app Paytm from the Play Store for promoting its fantasy app Paytm First Games which Google considered to be a betting app. However, since then, the online gaming sector in India has picked up tremendous pace.
The fantasy sports market in the country 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. The fantasy sports market in India has a user base of around 13 crore — the highest anywhere in the world.
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 unicorn, i.e. private companies with a valuation of $1 billion or more. On Android, these apps had to be sideloaded, meaning that users had to install them using a software package directly from the Internet.
Notably, developers selected as part of the pilot will not be able to offer Google’s in-app billing mechanism and instead will have to offer alternate third-party billing features in their apps. Google, it is understood, will not charge a commission on transactions made on these apps, in line with its service fee policy for such apps globally.
“We are constantly exploring ways for local developers to build successful businesses and offer delightful experiences on Google Play. Through this pilot program, we are taking a measured approach that will help us collate learnings and retain an enjoyable and safe experience for our users,” a company spokesperson said in a statement.
According to a source briefed on the matter, Google has chosen to allow fantasy games as part of a pilot “because of the evolving nature of the fantasy gaming industry and in order to collate adequate information about any possible user harms and safety of such apps”. The online gaming sector is facing regulatory uncertainty. Despite some favourable judgements by the Supreme Court and other high courts that fantasy gaming apps are games of skill and hence legal, the app category has been banned in several states including Telangana, Andhra Pradesh and Odisha among others.
Indeed, that is also one of the key parameters that developers will have to follow if they wish to be selected in the pilot. In its terms and conditions about the pilot, Google has said that developers will have to ensure that they restrict access to their app to users residing in states where DFS and rummy apps are prohibited.
As Google battles regulatory scrutiny on its Play Store practices globally, the company has lately diluted some of its policies in a bid to allay some of those concerns. Earlier this week, it said it will allow developers of non-gaming Android apps from several countries, including India, to offer third-party payment options under a pilot project. On these alternate payment systems, developers will see their service fee of 15-30 per cent reduced by 4 per cent.