28% GST on online gaming. Tough times for dream11, mpl etc
Online gaming startups are among those rare breeds which were profitable . With this move, even they will be forced to do layoffs..
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Not sure if my understanding below is 100% correct but: Gambling should be curtailed. It's good. If we are gonna permit it just to make money. Let's squeeze them. Gambling just hurts people. Encouraging the worst among us. Hope it doesn't result in black market stuff though..
Not sure what the current GST is but isn't the increase just going to be passed on to customers?
Assuming the current GST is 18% do you think a 10% increase is going to discourage a larger chunk of their users ?
Also very curious to know what their non-ipl period financial performance is. Does anyone have info on that ?
As per the news, GST is being levied on full value (pot amounts), not on the platform fees. Meaning, if you put 100 bucks, levied GST would be 28 bucks.
The devil lies in the detail, for a 100 winning pot if the GST is applied at 18% / 28% it's doomsday But if for a Rs 100 pot, the GST is only on platform fees ,usually 10-15% then the only difference is about Rs1-1.2. Which can be borne by the deep pockets of dream11