In a reversal of sorts of its earlier policy of not allowing gambling apps on its play store – Google Play – Google is now set to allow testing of real money gambling apps in India, the rider being that it would not offer its billing systems. And people in the gaming industry are not happy.
The New Google Policy on Real Money Apps
The new policy on real money gambling apps that Google has in place allows testing and hosting of real money gambling apps on Google Play. There are caveats, though – the apps and service providers will not be able to use Google’s billing systems for payments.
There are other conditions to be met as well for this to work. For instance, the app must have safeguards and parameters – like age validation, for instance – in place to ensure children don’t have access to them. Another criterion to be followed is that the app must be incorporated in India.
The policy states as one of the conditions for the pilot that ‘apps must NOT be purchasable as a paid app on Google Play, nor should they use Google Play’s in-app billing system.’
The reason for the latter caveat is unclear, but it is most likely one of the following two – it either doesn’t want to be involved in the actual transaction process which is the core of real money gambling action, or, it wants the gambling apps on its app store to use only virtual currency.
If the reason is the latter there will still be at least a few takers because it will mean players using the app will still be safe from gambling-related problems because virtual currency will not lead to real money losses.
However, if the reason for the turnaround is the former, it is definitely something to think about. By denying developers of the apps access to its payment and billing systems Google is basically negating its own clear and stated policy and habit of getting developers to use only its financial systems, thereby creating an impression of monopolistic sabre-rattling for regulators worldwide.
Whatever the justification, there’s considerable uncertainty, because many are questioning whether this tech giant has prohibited traditional banking methods at Indian online casino apps. One possible explanation could be because it doesn’t want to be associated with the practice of gambling. However, ensuring apps would only use digital currency could be another plausible explanation.
Why Industry Members and Regulators are Unhappy with the New Google Policy
For quite a while now, as stated earlier, Google has a ban in place that ensures fantasy sports and rummy apps are not able to list on Google Play. The reason – they apparently go against the stated policy on gambling of the app store.
As a result, quite a few popular DFS apps and rummy apps – like MPL, PayTM First Games, RummyCircle and Dream 11 – are not available to Android users on the Play Store. The turnaround has led to quite a few frowns, and for different reasons.
Industry stalwarts, like Paavan Nanda the co-founder of WinZO, an online gaming platform, have welcomed the move but called it discriminatory. According to him Nanda,
“While a change of stance by Google to finally open its platform to real money gaming apps is welcome, the selective exclusion of all real money skill games except rummy and fantasy is discriminatory.”
Some have even gone to the extent of calling it an abusive display of the dominant role that Google has opted to follow in the industry.
The Indian media has had a role to play as well – The Hindu, a prominent national daily, published a report where it linked online gambling to 17 cases of suicide. Another outlet, Media Nama, published a finding that suggested a number of Indian states had actually tried enforcing a ban on rummy.
A Timeline on Google’s New Policies Relating to Real Money Gambling Apps on Google Play
For a while now, Google has actually allowed the hosting of gambling apps on Google Play as long as they met one of the following stipulations:
- They were approved by the concerned government
- They came under the ambit of one of the following categories:
- Sports betting
- Horse racing
- Online casino games
- Daily fantasy sports
- Lotteries
Things started moving rapidly in 2022, where in July, the company launched a pilot solely in Japan, to test and run digital versions of the claw machines that you saw as part of the arcade gaming setups of earlier times. The pilot was expected to run for a whole year.
On September 7, 2022, Google announced its decision to allow developers from India to list apps that offered DFS and rummy variants on the Play Store. Given that it is a pilot that Google has allowed, it is possible that these policies may change again if Google finds them unfeasible.
In the meantime, Google released the following statement:
“We are constantly exploring ways for local developers to build successful businesses and offer delightful experiences on Google Play. Through this pilot program, we are taking a measured approach that will help us collate learnings and retain an enjoyable and safe experience for our users.”
Google’s Earlier Ban of Real Money Apps on Google Play for Indian Users
Google caused quite a row in September 2020 when it suspended PayTM from showcasing its fantasy sports service – PayTM First Games – on Google Play. Google said this was in line with the gambling policies that applied to its Play Store.
PayTM, the other party involved – along with other local platforms like Dream11 – was definitely not pleased, especially given that they were able to host these apps and services on Apple’s App Store. The argument they made was simple – numerous Indian courts had ruled that Rummy and daily fantasy sports (DFS) were games of skill, not chance, and therefore didn’t come under the ambit of gambling.
