Online gaming companies, specializing in platforms like poker, rummy, and fantasy sports, are implementing strategies amidst the evolving landscape of taxation. In response to the surge in indirect taxes, these companies are devising new approaches to retain user funds within their ecosystems, ultimately aiming to bolster their revenue streams.
As reported by The Economic Times, to navigate the intricate tax structures, gaming firms are implementing measures such as limiting the frequency of withdrawals, particularly in shorter-duration games like rummy and poker. By curbing withdrawal options, these platforms aim to mitigate the impact of repetitive taxation, as each deposit incurs a GST charge. Additionally, for fantasy sports, where engagement spans over longer periods with a substantial user base, adjustments in win percentages are being explored.
The introduction of a 28% GST on deposits has necessitated a recalibration of revenue models within the real-money gaming sector. Previously, taxes were levied on earnings generated from user wagers. However, under the new regime, taxes are imposed on user deposits, prompting companies to rethink their operational strategies.
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