Google’s RMG push: Google has announced its intention to expand support for real-money games (RMG) on its Play Store by including a broader range of gaming categories, subject to compliance with local regulations.

The tech behemoth announced today that it will initiate this enhanced RMG support programme in India, Brazil, and Mexico this June, with subsequent expansion into additional countries on the horizon.

In line with this policy shift, Google is considering revisions to its service fee structure for subscriptions and in-app transactions. While specific details regarding the fee adjustments remain undisclosed, Karan Gambhir, Director of Global Trust and Safety Partnerships at Google, stated in a blog post, "Our updated approach aims to align with the distinctive economic dynamics and diverse developer revenue models prevalent within the RMG sector."

Historically, Google's Play Store policy permitted RMG applications strictly in alignment with local regulatory stipulations for specific gaming genres. However, this updated policy will extend permissions to encompass a broader spectrum of RMG apps that are legally permissible albeit unregulated.

Background

Google started integrating RMG apps into the Play Store ecosystem in 2021. This step gained momentum in 2022 with a pilot programme in India, enabling the inclusion of fantasy sports and Rummy applications. Last year, Google granted an extension for previously approved apps until January 15, subsequently offering an extended grace period until June 30 through its recent announcement.

Notably in 2020, Google removed Paytm's app from its Play Store due to the inclusion of newly introduced fantasy sports components. 

The pilot programmes in both India and Mexico have incorporated stringent regulations involving age and identification verification protocols. These regulations will persist until June 30, post which developers will gain the latitude to publish a broader array of RMG apps beyond the confines of fantasy sports.

Google has committed to releasing comprehensive policy guidelines in the forthcoming months, incorporating safeguards such as age restrictions and geographic limitations.

The introduction of a revised service fee structure for RMG apps on the Play Store is poised to be a pivotal determinant of Google's revenue trajectory, particularly amidst escalating global scrutiny concerning the facilitation of alternative payment methodologies. Google's existing user-choice billing initiative, piloted in 2022 and retaining select partnerships, typically entails a 4 per cent discount on service fees.