The government is considering allowing 100% foreign direct investment (FDI) in online gaming.

The government is considering a policy change that could allow 100 percent foreign direct investment (FDI) in the online gaming sector, according to a report by Mint on July 31. This potential shift would be a significant development for the industry, which has been struggling with high taxes and complex regulations. The proposal, currently under review by various government departments, including the Department for Promotion of Industry and Internal Trade (DPIIT), suggests that full FDI would be permitted in online real-money gaming sectors, as long as the investments do not pertain to betting or gambling activities.

If implemented, this policy change would streamline the process by removing the need for official approval under the automatic route, thereby making it simpler for startups to secure foreign investment. While Moneycontrol has not independently verified the report, this proposed move could significantly benefit the industry by reducing bureaucratic hurdles and attracting more foreign capital.