Google to Expand Real-Money Gaming Apps on Play Store in India, Mexico, and Brazil from June 2024

In a recent announcement on January 12, Google disclosed plans to permit a wider array of real-money gaming apps on the Play Store in India, Mexico, and Brazil starting June this year. Alongside this, the tech giant will introduce a service fee on these apps, marking a shift in its revenue model.

This decision comes amid challenges faced by the real-money gaming sector, grappling with the recently implemented 28% Goods and Services Tax (GST) in India and potential retrospective taxation claims from authorities. Google emphasized that the adjustment in the service fee model is aimed at aligning with the value provided by Google Play and sustaining the Android and Play ecosystems.

“We are working closely with developers to ensure our new approach reflects the unique economics and various developer earning models of this industry. We will have more to share in the coming months on our new policy and future expansion plans,” Google stated. Currently, Google charges a service fee of 15-30% on in-app purchases and app sales.

Developers utilizing the “user choice billing” system, an alternate billing method, can benefit from a 4% reduction in the service fee. This implies that developers may incur a service fee ranging from 11-26% for in-app purchases and subscriptions, contingent on the nature of the app or service.

Google is also placing responsibility on developers to ensure their apps comply with local laws and adhere to the updated policy. Notably, in September, Google had announced its intention to allow all types of real-money games on the Play Store, subject to approval by self-regulatory bodies (SRO) once the new regulatory framework is established in India.

Given that the Ministry of Electronics and Information Technology (MeitY) is yet to notify SROs for the sector, Google has extended the grace period for daily fantasy apps and real-money gaming apps participating in the company’s gaming pilot on Google Play until June 30, 2024, when the new policy takes effect.