Swadeshi Jagran Manch Pushes for Limits on Entry Fees for Online Games, Plans to Approach Government
The Swadeshi Jagran Manch, an influential group in the country, will push for limits on entry fees for players of paid online games, potentially turning up the heat on a multi-billion-dollar industry that is preparing to lobby against tougher rules. The growing popularity of real-money games, driven by backing from top figures in cricket, a subcontinental craze, has prompted regulatory efforts to combat the risk of addiction, and reports of financial losses and suicides among young people. Such games could make up as much as 53 percent of a gaming market that is set to reach $7 billion (roughly Rs. 55,800 crore) by 2026, or three times its size last year, says research firm Redseer.
"Ticket size should be regulated. It should not be more than 50 rupees. This is an addiction," said Ashwani Mahajan, an official of the Swadeshi Jagran Manch, which is seen as having significant influence on policy making in the country.
"We will talk to all concerned ministries about this," he told Reuters.
Although equivalent to just $0.62 (roughly Rs. 50), the proposed cap represents a significant proportion of the Rs. 25, or 31 cents, typically spent by 97 percent of the users on an app such as Mobile Premier League, for example.
The tiny remaining share of 3 percent users contribute 30 percent of the platform's revenue by playing higher ticket-sized games, one industry source estimated.
Tuesday's comments by the group, the economic wing of the ideological parent of the ruling Bharatiya Janata Party (BJP), come after a government panel called for a new regulatory body and recommended deposit and withdrawal limits.
The measures, in a confidential draft reported last week by Reuters, have alarmed an industry in which Tiger Global and
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