With Budget 2023, golden days are in store for fantasy Esports and gaming

The Union Budget for 2023-2024 proposes setting up of 100 labs for developing apps using 5G services in engineering institutions. It was also stated that mobile phone production in India has increased from 5.8 crore units valued at Rs 18,900 crore in 2014-15 to Rs 31 crore units, valued at Rs 2.75 lakh crore in the last financial year. The Bidget also proposes removing minimum threshold of Rs 10,000 for TDS on online gaming and providing clarity on taxability.

The online gaming sector sees these as giving a boost to this sector.

Rohit N Jagasia, Founder and CEO of Revenant Esports:

“Even though the Budget announcement didn’t specifically bring out the matters of concern related to AVGC sector or the esports segment to be precise, we are glad that attention is given to bring in development that would positively impact our sector. The increased mobile phone production in India will directly impact on the growing interest in mobile gaming. India is a growing market for mobile gamers which will shape the Indian esports sector. Affordable mobile device and the increasing accessibility of gaming platforms have also contributed to the growing popularity of esports in India. This is expected to further drive the growth of the Indian esports industry in the coming years.

We are also looking forward to the progress of 100 labs for apps development using 5G services will be set up in engineering institutions. Hopefully this could be the beginning of the 5G era in India. The announcement of removing minimum threshold of Rs 10,000 for TDS on online gaming and providing clarity on taxability is a big step forward, however most esports games, like ours, don’t have any money withdrawing system so these are applicable for the online gaming sectors which are into Real Money Gaming.”

Rishabh Bhansali, Co-Founder of FanClash, Asia's Largest Esports Fantasy Platform:

“The enormous upsurge in mobile phone production has been the impetus for the boom of the Esports industry in India. Pocket-friendly smartphones have taken gaming and fantasy Esports to every corner of the country and a further decrease in its prices as the government proposes to reduce customs duty on import of certain inputs for mobile phone manufacturing will boost the sector’s growth like never before.

We are extremely delighted with the propositions made in today's budget and looking forward to the golden days that are in store for fantasy Esports and gaming in the country.”

Animesh Agarwal, Founder & CEO, 8bit Creatives:

“The expansion of India's gaming business mirrors and contributes to the growth of the mobile phone industry. The number of mobile gamers in India is projected to increase to 650 million by 2025, according to the most recent report from the Internet and Mobile Association of India (IAMAI). 

The previous seven to eight years have been instrumental to the relationship of mobiles and gaming in India, with numerous mobile gaming titles being released and gaining popularity among the Indian gaming community. Developer dedication to expanding mobile gaming in India and the advent of different employment opportunities through mobile gaming have all contributed to an increase in the number of Indians adopting mobile gaming. This has also contributed to the growth of the mobile device sector, as professional gamers frequently seek to upgrade their devices as they progress in their career. Even casual gamers seek better devices in their gaming journey. Interdependence of the industries is also reflected in the commitment of the mobile device companies towards strengthening their presence in the gaming community through dedicated efforts and investments. 

From launching gaming-specific devices such as One Plus Nord, ASUS ROG gaming phones, etc., to hosting multiple events and tournaments for the community, to working with gamers to build a community of mobile gamers, etc., mobile device giants such as One Plus, ASUS, Samsung, etc. are also investing heavily in the gaming industry in India. Indian Gaming has the potential to provide a significant boost to the electronics industry as a whole, spanning consoles, PCs, VR gadgets, mobile devices, wearables, IT accessories, and so on. It will be fascinating to observe the next growth surge of gaming in India and how it contributes to and parallels the rise of electronics industry.”

Lokesh Suji, Director, Esports Federation of India & Vice President of the Asian Esports Federation (AESF)

“As stated by our honourable Finance Minister Nirmala Sitaraman in the Budget, mobile phone production in India has seen a significant rise in the past few years and that has undoubtedly been a game-changer for the Esports industry in the country. Contributing extensively to propelling the industry to unimaginable heights, the increasing availability of smartphones in India at affordable rates has not only expanded the player base by making gaming more accessible, but has also attracted investment from companies, resulting in the development of existing as well as newer games. 

With the numbers further upscaling and 5G acting as a catalyst that fuels the industry's flourishment, we are going to witness monumental growth within the Esports sector in the coming years. As we are still awaiting clarity on the taxability for Esports, we are hopeful that the decisions will be in favour of the community and impact it positively.”

Rohit Agarwal, Founder & Director, Alpha Zegus, the next-gen marketing agency specializing in the domains of gaming & lifestyle:

“An increase in smartphone production in our country will bring down smartphone costs drastically - that's a big win for the gaming industry! More advanced smartphone tech will be available at accessible pricing, which means gaming will eventually no longer be restricted by hardware capabilities. Really looking forward for this to be massively adopted.

Modifications to the TDS limit will impact the Real Money Gaming industry more than the Esports industry. Since esports games majorly do not have a system of 'money withdrawal', TDS does not impact them. As for the RMG industry, the removal of TDS threshold is a bit debatable. Most forms of income in India is considered under the Rs 10,000 TDS threshold. If we consider ‘winnings’ as ‘income’, then the threshold should remain the same.”

Gaurav Gaggar, promoter of Poker High:

"Overall a very balanced budget. From a gaming point of view, the TDS limit of 10k is being revised. TDS will now be deducted from the first winnings but the big part is that it will be calculated at the time of withdrawal or settled at the end of the year and therefore losses can be adjusted through the year. This is good clarity from the government. They are also going to define gaming more properly for this purpose. With regards to GST, we hoped to get more clarity on the rate and the mechanism of charging it on service fees charged by the gaming companies rather than the deposits. This issue remains and needs to be sorted."

Suhas Khullar, CFO, Loco:

“The Union Budget for 2023–2024 is commendable for setting the bold vision of making India a tech superpower.Two Initiatives focusing on capability building for the tech ecosystem stand out. First, the intention to set up 100 labs for developing applications using 5G services has the potential to open up a wide range of prospects for the ecosystem, including esports. Secondly, setting up of centers of excellence for AI under the “Make AI in India and Make AI work for India” vision, along with the introduction of Pradhan Mantri Kaushal Vikas Yojana 4.0, will help young people in developing the necessary expertise in coding, artificial intelligence, and other technologies. These enhanced digital skills will now support the sector's capacity to grow into a significant employer.

The initiatives on Entity Digilocker, setting up e-courts, and Central Data Processing Centre would improve transparency, and support the 'ease of doing business'. The focus on capability building for the technology ecosystem, and improving the 'ease of doing business' will help strengthen India at a foundational level.”