India’s finance ministry has received a letter from over 100 gaming companies expressing their concerns about the new 28 percent tax on online gaming firms. These companies argue that this tax will hinder foreign investment and put the $2.5 billion already invested in the sector at risk. The tax specifically targets the funds collected by online gaming companies from their customers. The popularity of games like fantasy cricket has grown significantly in recent years, but there are concerns regarding addiction among players.
Major investors like Tiger Global and Peak XV (formerly known as Sequoia Capital India) have made significant investments in Indian gaming companies such as Dream11 and Mobile Premier League. In their letter, sent on July 14, gaming companies including MPL urged the finance minister to reconsider this decision due to its potential impact on jobs and investment. They believe this tax will discourage both domestic and foreign investors from considering the online gaming sector in India as a viable investment opportunity. They emphasize that the current investments, totaling $2.5 billion, are at stake because of this decision.
Despite these concerns, India’s finance ministry has not responded to inquiries regarding this matter. The government, however, believes that this tax serves both social and economic purposes. Some Indian ministers view online gaming platforms as a “social evil,” according to Federal Revenue Secretary Sanjay Malhotra.
The revenues of fantasy gaming platforms have also witnessed significant growth, with a 24 percent increase during the Indian Premier League cricket season compared to the previous year. Redseer consultancy reported that more than 61 million users participated, generating over $342 million in revenue. Users can create a fantasy cricket team for as little as Rs. 8.
In other news, the article mentions the Nothing Phone 2 and discusses whether it will serve as the successor to the Phone 1 or coexist with it. Readers can find more information about this topic in the latest episode of Orbital, the Gadgets 360 podcast, available on various platforms such as Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, and Amazon Music.
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