Gaming

The regulatory framework for online gaming in India is fragmented across central and state levels. At the central level, the IT (Intermediary Guidelines) amendments for online gaming intermediaries (2023) require registration, user verification, and display of terms. GST at 28% applies on the full face value of bets for all online games. The Consumer Protection Act applies to player-facing services. State-level gambling and gaming laws vary significantly, with some states specifically restricting or banning certain online games regardless of the skill-chance classification. If your platform involves real-money gaming, additional KYC, payment, and responsible gaming obligations apply. Foreign-owned platforms face FDI policy considerations.

If your game involves NFTs or blockchain-based in-game assets, those assets are likely classified as virtual digital assets (VDAs) under Indian tax law, attracting 30% tax on transfer and 1% TDS. If players can trade, sell, or cash out these assets, the platform may need FIU-IND registration and AML/KYC compliance. The characterisation of in-game NFTs as securities, commodities, or utility tokens affects the regulatory framework that applies. Smart contract terms governing the assets must be aligned with applicable Indian law. FEMA considerations arise for cross-border transactions involving these assets. We advise on structuring blockchain-integrated gaming products to manage tax and regulatory exposure.

Gaming IP spans multiple categories. The game software is protected by copyright. Characters, logos, and brand names should be trademarked. Game art and visual design may qualify for design registration. Game mechanics are generally not copyrightable but can be protected through trade secrets and contractual measures. Sound and music in the game require proper licensing or original creation with clear IP assignment. User-generated content requires terms of service addressing IP ownership and licensing. If the game involves AI-generated content, additional copyright and IP ownership questions arise. We advise gaming companies on building a comprehensive IP protection strategy.