Gaming

New GST regime pushes smaller gaming platforms to the brink

Akanksha Sarma

July 19, 2023 | 7 Min Read

The government’s decision to levy 30% GST on the full face value of bets on real-money gaming platforms is likely to cause an exodus of users. With prize pools shrinking as a result, this could render smaller gaming firms unappealing and, ultimately, unviable.

This year’s Indian Premier League—the world’s most lucrative T20 cricket tournament—was a goldmine for the country’s various real-money gaming (RMG) platforms.

With brands like Dream11, Games 24xSeven’s My11Circle, and MPL emblazoned on the jerseys of the tournament’s teams, 61 million Indians flooded into gaming platforms for a taste of the prize money on offer, according to a report from market research firm RedSeer. All told, the report states, these companies raked in Rs 2,800 crore over the course of the two-month-long tournament.

With multiple unicorns in the fray, the feel-good factor was palpable in the RMG sector.

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