Back to back 2 nightmare decisions for Sports Fantasy Industry by the finance department. Tuesday, 11 July, was the most upsetting day for those who are directly or indirectly connected with the sports fantasy industry.
- 28% GST imposed on Online gaming, Casinos, and Horse racing at full face value.
- This will not only upset your entry fees but also have a huge impact expected on no. of joining by users.
- Double burden – Increase in Joining fees + 30% TDS on profits making it impossible to expect.
- Govt. intended to increase its revenue but killed the industry by imposing double taxation instead.
- Either they forgot that they have recently imposed 30% TDS on profits.
It is expected that 28 will be charged for every 100Rs, which is 28%; if you join with 200Rs, then 28%, i.e., 56rs charges will be levied. And if you win, then you will be charged 30% TDS on your profits which is practically impossible to take risk in.
Impact On Companies
Some small-level or growing companies already left the market after IPL bearing the losses, and users turn off after 30% TDS on winnings.
Many settled companies facing serious troubles in day-to-day operations or battling their heart out to survive in the market.
After this 28% GST, None of the apps will be able to survive for long; after some days of implementation, companies will be forced to shut their operations.
Lakhs of people will be unemployed; looks exaggerated? Nope, this is the reality; there are lots of related services like web & App development, Marketing, APIs, Server management, and a lot more.
Heavy FDI inflows, lots of new startups, and Investments of billions will be wasted within no time. Billion dollar online gaming industry will be dead by a single decision.
Impact On Users
Already 30% TDS on winnings hurting the users badly, but still, the industry was working and growing exponentially with a broken heart. Users were having less profits but somehow managed to stick to the apps.
The new GST burden will leave no choice, and there will be no option left except to quit and forget this gaming industry forever.