The real money gaming industry in India has been dealt a devastating blow, thanks to recent regulatory changes and taxation policies. The government’s decision to implement hefty taxes and impose strict regulations has sent shockwaves throughout the industry. In this blog post, we’ll delve into the grave consequences of these measures on the gaming sector and discuss the urgent need for startup founders to enter politics and fight for representation. Failure to do so could result in a series of collapsing industries, one after another.
Burden of Taxes on the Real Money gaming industry
The Indian government’s move to impose a staggering 28% Gross Goods and Services Tax (GST) on real-money gaming transactions has had a significant impact on players. It means that for every ₹100 wagered on a ₹72 pot entry, a hefty ₹28 goes straight into the government’s coffers. Such exorbitant taxation has made it financially unfeasible for many players to continue their gaming activities.
TDS: A Double Blow on real money gaming industry
As if that wasn’t enough, winning players are now burdened with an additional obstacle in the form of a 30% tax deduction at source (TDS) on their earnings. When you factor in the already reduced winnings due to platform fees, players are left with a mere fraction of their actual earnings. For example, if a player manages to win ₹54 after accounting for platform fees, they will be slapped with a TDS of ₹16.20, further diminishing their hard-earned money. The dream of enjoying a luxurious living room swimming pool during the monsoon quickly fades away, making the entire experience far less appealing.
The Fantasy Gaming Industry Takes a Hit
The fantasy gaming industry, once a vibrant and thriving sector driven by passionate players, is now experiencing a severe decline. The heavy financial burden imposed by steep taxes and fees has discouraged players from participating in real money gaming, leading to a significant loss of revenue for operators. Experts estimate that the industry has already suffered mind-boggling losses of around $10 billion, clearly demonstrating that the repercussions extend beyond individual players and pose serious threats to the overall economy.
| Tax Components | Old Tax Structure | New Tax Structure |
|---|---|---|
| Gross Goods and Services Tax (GST) | 18% of the transaction amount | 28% of the transaction amount |
| Tax Deducted at Source (TDS) | 30% of the winnings | 30% of the winning |
Why Startup Founders Must Enter Politics
Amidst this gloomy landscape, it is crucial for startup founders and industry stakeholders to actively engage in politics. By stepping into the political arena and advocating for their interests, they can ensure that policymakers fully comprehend the complexities of the gaming industry and the challenges faced by its participants. Without proper representation, we run the risk of witnessing the demise of one industry after another, which will have far-reaching consequences for entrepreneurship and economic growth.
Conclusion of real-money gaming industry in India
The real-money gaming industry in India is currently teetering on the edge of collapse due to the government’s regulatory decisions and tax policies. The heavy burden of taxes, coupled with the TDS on winnings, has made real-money gaming unappealing to players. As a result, the industry has experienced substantial financial losses. It is imperative for startup founders and industry leaders to actively engage in politics, fighting for their interests, to prevent similar outcomes in other sectors. Only through proper representation can we hope to create an environment that fosters innovation and sustains economic growth.