​Real-money gaming companies are engaging with the stakeholders, as they are likely to be the next cohort of application developers facing the 15-30 per cent service fee charge by Google.

This occurs as real-money gaming companies contend with a 28 per cent goods and services tax. The introduction of the service fee could lead to more consolidation in the market, according to industry experts.

Earlier, under a pilot programme, Google had allowed a few real-money gaming apps to be listed on Play Store for free. After running the pilot for two years, it said a commission would be charged from June. Further, the marketplace would be opened to all RMG apps.

“While a few big players in the industry that have enough funds might be able to absord the 28 per cent GST and 30 per cent service fee, but for the smaller firms, this could be difficult,” said a gaming company executive.

For the real-money gaming application, delisting from Play Store to avoid paying the commission will not be an easy decision for given the scale and access that the Android maker provides, noted another industry executive.

Google had launched the pilot with rummy and daily fantasy apps in India. In January, when Google said it would allow more RMG operators (likely poker platforms) to list their apps on Play Store starting June 30, the tech giant said it would also ‘evolve’ its service fee model. This means companies could face a levy of 15-30 per cent on their revenue.

However, some industry executives believe this could lead large platforms to operate outside Google’s Play Store.

“Yes, the scale, the reach does add up but at the same time, this is the sector which has been operating on its own for over a decade since it wasn’t allowed on Play Store,” another gaming executive said.

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