Licenses related to Online Gaming in India
Subject to the state laws of the location of the business offering online games with stakes, specific license/ permission may be required.
Why License?
The online gaming involving stakes is not per se prohibited in India, therefore the requirement of obtaining license for online skill games is not mandatory. However, it is beneficial in the following terms:
- Verifies that a game is game of skill.
- Ensures no gambling activities are carried on by the operator.
- Skill games shall be allowed throughout all states in India except those prohibiting betting
- Skill game allowed for playing on web platforms
- Skill game allowed for playing mobile platforms
- Higher chances of revenue generation since permission indicates authenticity
Obtaining a License for Online Gaming in India
In order to obtain the license for online skill games, an application is required to be made to the Directorate, Nagaland State Lotteries along with submission of necessary and applicable fees.
The license for online skill games with stakes from Nagaland State Government is valid in all states in India except in those states which have specifically prohibited the activity of online games with stakes. It is valid of a period of 5 years.
The fee structure for obtaining the license for game of skill in Nagaland is stated below:
- Application fees: INR 50,000/- [One time fees]. This fees is non-refundable.
- Annual license fees: INR 1,000,000/- p.a. for first 3 years per game and INR 2,000,000/- p.a. for next 2 years. However, for 3 or more games the annual license fee is INR 25,000,000/- p.a. for first 3 years and INR 50,000,000/- p.a. for next 2 years
- Royalty: 0.5% of the gross revenue (less service tax) generated by the business which has obtained the license.
A point to be noted here is that a foreigner or a foreign company cannot apply for online gaming license issued by Nagaland State Government. Only those entities which have their controlling stakes and executive decisions are taken in India can apply. The license for online skill games issued by the Directorate of Nagaland State Lotteries is valid for a period of 5 years, which can be renewed after a period of 5 years from the date of issue of such license.
For more information Licenses related to online games in India, please write to us at info@ssrana.com or submit a query.
To know more about Gaming Laws in India, click on the links below:
