• Online gaming license

What all license are needed for online gaming app and what is the procedure ?
Asked 2 years ago in Business Law

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7 Answers

in many states like Telangana , Assam , Orissa online gaming is prohibited 

 

you can apply  with directorate Nagaland lotteries for online skill gaming license . similarly Sikkim also issue license for online games of skill 

 

it is valid for period of 5 years and can be renewed for further period of 5 years 

 

 

Ajay Sethi
Advocate, Mumbai
96961 Answers
7824 Consultations

On paper, gambling apps are not illegal, especially games that are based on skills. Nagaland, Sikkim, and Kerela allow online gambling apps in their respective states however they are strictly regulated (only skill-based games are allowed) The apps must have licenses to operate in the said states. Telangana, Rajasthan, Uttar Pradesh, Andhra Pradesh, and Tamil Nadu have banned gambling apps in their territories expressively.

West Bengal has no laws which could prevent online gambling apps and although gambling apps are illegal in Goa, people still play them. Every state has its gambling laws whereas the Public Gambling Act, of 1867 is the only central act.

The IT Act, of 2000 governs these acts. It does not punish anyone regarding gambling apps. However, it does not allow certain foreign and illegal websites which could harm people through immoral means. 

T Kalaiselvan
Advocate, Vellore
87163 Answers
2341 Consultations

Gambling apps are between the line of legal and illegal. On one hand, the Indian laws are not strict enough to enforce regulations on them. While these apps could potentially prey on people's plight.

On paper, gambling apps are not illegal, especially games that are based on skills. Nagaland, Sikkim, and Kerela allow online gambling apps in their respective states however they are strictly regulated (only skill-based games are allowed) The apps must have licenses to operate in the said states. Telangana, Rajasthan, Uttar Pradesh, Andhra Pradesh, and Tamil Nadu have banned gambling apps in their territories expressively.

gambling apps like Dream 11 will never be found on Google Playstore because Google itself does not allow money-based contests.

ever since the rise of Jio, many young and impressionable people are in the initial stage of understanding the internet. Most of them don't understand the advantages and disadvantages of gambling apps because of their desperation to make money. The app companies would often use their desperation for profit.

Therefore in the absence of any legal procedures restricting the use of online gaming app, one must be cautious about it after venturing into it. 

T Kalaiselvan
Advocate, Vellore
87163 Answers
2341 Consultations

  • Application fees: INR 50,000/- [One time fees]. ...
  • 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. ...
  • Royalty: 0.5% of the gross revenue (less service tax) generated by the business which has obtained the license.

2) Company Registration or Company Formation is a mandatory step to begin an online gaming company in India. Company Registration allows you to legally register your company with MCA(Ministry of Corporate Affairs).

 

3) 

Trademark serves as a symbol for your company’s name, logo, and individuality.

Furthermore, trademark registration protects your game’s title and logo against unauthorized cloning.

 

4) Copyright is a safeguard for your games, ensuring that they cannot be stolen or copied by others. A copyright registration restricts the rights of anybody else to use your idea without your permission.

 

5) 

The provider of goods or services has the responsibility for paying GST.

In the case of online games, the platform that hosts the game is considered the provider and, as a result, is responsible for paying tax.

Ajay Sethi
Advocate, Mumbai
96961 Answers
7824 Consultations

Online gaming is offence under the Bombay Prevention of Gambling Act, 1887 for which punishment is jail up to 9 months but not less than 2 months. you cannot obtain license for gaming online or offline. 

Ravi Shinde
Advocate, Hyderabad
4195 Answers
42 Consultations

You need RBI permission for financial transactions. Rest all are routine permissions

Prashant Nayak
Advocate, Mumbai
32486 Answers
201 Consultations

Does the online game involve cash or cash prizes?

Siddharth Jain
Advocate, New Delhi
6379 Answers
102 Consultations

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