The survival play of real-money gaming cos

livemint.com:

₹10,000. But from 1 April, after changes were made to the Income Tax Act, a 30% TDS now applies on net winnings from online games in a financial year. Withdrawal of net winnings get taxed at source either when it crosses ₹100 or at the financial year end.

“This sudden change substantially impacted player earnings and motivation, leading to a decline in user engagement and loyalty," Yadav wrote. From 1 October, real-money gaming companies, those who offer games like fantasy cricket and rummy, would have to brace for yet another regulatory disruption. Yadav wrote that this would “further compound our woes".

A 28% GST will have to be paid on the full value of amounts deposited by players for betting on online games, casinos, and horse races. However, redeployed winnings will be excluded from the indirect taxation. How will this impact player motivation? Consider this: Gaming platforms charge a fee of 10% .

In the earlier tax format, platforms had to deduct a GST of 18% on the platform fee. So, if a gamer deposited ₹100 to play, the platform would charge ₹10 as its fee. The GST deducted would be ₹1.8.

From 1 October, 28% GST would be deducted on ₹100. Add to this a 10% platform fee, and the gamer’s playing pool drops to ₹62. The collective prize pool of the gaming platform would therefore shrink—gaming companies believe that the smaller prize pool would impact their ability to attract or retain players.

And smaller companies will struggle more than the large ones. “As an entrepreneur, it has been heart-wrenching to see the dream we built with so much dedication and determination now facing an uncertain future. Our team has invested countless hours, sleepless nights into nurturing this platform, hoping to contribute to