Google's RMG Pilot in India Extended, Faces Criticism and Ban Threat
Google's Real Money Gaming (RMG) pilot program in India, launched in 2022, has seen significant changes and criticisms. The program, which initially allowed only daily fantasy sports and rummy, has been indefinitely extended in India but ended in Mexico. Meanwhile, a recent bill in India proposes a blanket ban on the online real money gaming sector.
The pilot program's effects have been substantial. While user acquisition metrics and profit margins soared for the chosen formats, excluded operators saw a sharp decline. This concentration has had visible impacts on advertising and promotions within the market.
Google's approach to determining 'skill' in games has been criticized. The tech giant's commitment application with the Competition Commission of India (CCI) proposes allowing games certified as skill-based by a recognized third party based on Google's specified standards and prevailing law. However, many argue that this approach excludes numerous skill-based games not decided upon by courts.
The CCI initially ruled that Google abused its market dominance to selectively distort the Indian online gaming market. Google recently informed the CCI that it would amend its app store and advertising policies to allow all RMG formats offering skill games. However, a recent bill in India bans the online real money gaming sector altogether, potentially rendering these changes moot.
The Quantum Hub, a public policy firm specializing in technology sector policies, advises Google and other stakeholders on digital competition issues.
Google's RMG pilot program in India has sparked debate and criticism, with significant impacts on the market. As the situation evolves, with potential policy changes and a proposed ban, the future of online real money gaming in India remains uncertain.
