Earlier this year, Google announced plans to distribute RMG apps on new markets through its Play Store. It would levy a service fee on these apps. The initiative was set to start in Brazil, Mexico, and India in June 2024. It planned to extend the service to more countries later. Now it has put a hold on its plans to support more types of real-money game (RMG) services. The reason for the pause is a lack of a central authority to approve such apps in certain regions.
More time is necessary
Google did not expect expanding support of RMG apps in markets without a central licensing framework to be so difficult. The regulatory complexities and lack of clear guidelines have caused Google to announce that it needs additional time. It needs this to get things right for its developer partners and keep users safe.
Currently, several licensed online casinos in the U.S. offer iGaming apps that enable users to play on mobile devices. They can download casino apps from the Play Store and play for real money. Different safe and secure payment options are available to them.
Pilot programs
Several pilot programs were conducted by Google in countries like India and Mexico. Some of the apps included daily fantasy sports and real-money rummy apps. There was positive feedback from developers participating in the pilot projects.
Google has to meet local safety laws and specific user safety requirements to expand its support of RMG apps. The lack of a central body to approve the apps is a regulatory concern. It has to consider what this could do to the financial goals and safety of players.
Google won’t support new types of RMG apps but it will keep those that are part of the pilot program in India. It has offered an indefinite grace period for the apps to continue operating while Google revises its strategies.
Regulatory uncertainties
Play Store’s terms and conditions are there for a reason. For example, users must have a valid Google account to download apps from the Play Store and must abide by the age restrictions. In countries like India and Brazil, upheavals and uncertainties regarding gaming policies and regulations are causing concerns.
There are ongoing legal disputes in India over the classification of RMG games. In October 2023, the finance minister imposed a 28% goods and services tax (GST) on RMG revenues in India. He said he would revise this after six months but has yet to provide an agenda. This has caused uncertainty for all stakeholders, including Google. The same applies in Brazil where regulatory uncertainties also exist.
The Indian industry association, the All-India Gaming Federation (AIGF), has criticized Google for its ‘arbitrary’ and ‘anti-competitive’ move. Google has considerable market influence in India and controls over 90% of app distribution. AIGF has urged Google to reconsider. CEO Roland Landers points out that its decision could stifle innovation and competition.
Google is still committed
Google’s hesitancy is proof of how difficult it is to enter unregulated or partially regulated markets. Google is still keen on supporting more types of RMG apps on the Play Store. It wants to help developers to create new businesses responsibly. And reach more people with various genres and content types. It is currently busy working on introducing a new service-free structure for RMG apps. This shows it hasn’t abandoned its interest in this area. It also continues to address the issues that stand in the way and will provide updates in the coming months.