Netflix May Monetize Its Games Platform with In-App Purchases and Ads
Renowned streaming giant Netflix is allegedly looking into new ways to make money as it prepares to add in-app purchases and adverts to its gaming platform. The business has been having constant conversations about ways to monetize its gaming platform. For the past two years, a ton of mobile games have been available for free download for Netflix subscribers.
Netflix games might introduce ads and in-app purchases
Since entering the market, Netflix has increased its presence in the gaming industry and released a significant number of games. Since players have paid for the premium membership, the game is free of charge. However, the company is looking to change its current business model. In recent months, internal discussions have been held to discuss how to proceed with this plan. Netflix has been investigating different approaches to making money off its gaming platform. These consist of choices like implementing in-app purchases, setting a price for premium games, and adding advertisements to games that are available to subscribers in the ad tier.
The company has over 75 mobile games available, including Grand Theft Auto, Love is Blind, Monument Valley, and Oxenfree. The report claims that Netflix intends to charge for premium game titles and monetize game placement. The business declared last year that it didn’t worry about in-game and advertisement payments. In the world of mobile gaming, where consumers are predicted to spend $111.4 billion on games by 2024, these strategies are widespread (and successful).
Netflix games in public tests
Netflix has also established studios in Southern California and Finland, as well as acquired several IPs and development facilities. Additionally, there are rumors that the company is working on a PC game, which may be the reason it needs to increase revenue to finance the project and make more investments in the company. It would be a significant departure from the current revenue model if it proceeded with this plan and put the aforementioned into practice. As it stated during the April 2023 earnings call that it does not want to add in-app purchases and advertisements to the games on the platform, Netflix has so far offered all of the games for free.
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Current games hosted by Netflix
There are 86 games on Netflix right now. Furthermore, there are almost 90 more in development, some of which are based on Netflix’s original series. Over the previous year, the company released about 40 games, including third-party games like Football Manager 24 Mobile, and developed titles like Oxenfree 2: Lost Signals and Netflix Stories: Love is Blind.
Grand Theft Auto: The Trilogy – The Definitive Edition, which the company released last month, also brought the well-known GTA franchise to the platform. The company is creating video games based on the well-liked television program Squid Games. In this viewers will engage in competitive gameplay. Additionally, Super Evil Megacorp is developing a game based on the recently released Netflix film Rebel Moon, and a game based on Money Heist was just released.
Slow Netflix games subscriber rate
However, not many people have played the games and their adoption has been sluggish. Only 1% of subscribers played the games, according to data that was made public after the service’s first year of launch. This percentage hasn’t changed much. Even after more games have been launched, and despite Netflix Games having spent close to $1 billion, the company intends to increase revenue to succeed with these new concepts.
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Netflix’s recent password-sharing stint
According to the report, the streaming service originally opposed enforcing strict password-sharing policies and launching an ad-supported tier. For the first time in more than a decade, they lost thousands of subscribers in 2022. This led them to rethink their decision. It would make sense for Netflix to include in-game purchases and advertisements to monetize its game content. At the beginning of 2023, the company’s growth slowed, which resulted in a 3% reduction in its workforce.
Here’s what they said
Netflix co-CEO Greg Peters says the company wants to provide a unique gaming experience. It will provide creators with the flexibility to make games that are only intended for player enjoyment. They will be free from the worry of other revenue streams like in-game purchases or advertisements.
We want to have a differentiated gaming experience and part of that is giving game creators the ability to think about building games purely from the perspective of player enjoyment and not having to worry about other forms of monetization, whether it be ads or in-game payment.
Read More: Nazara Technologies Partners with 4 Gaming Studios to Publish 5 Games
Nazara Technologies Partners with 4 Gaming Studios to Publish 5 Games
Nazara Technologies, a leading player in online gaming, has announced that it has partnered with four renowned Indian game studios to release five games in India, categorized as casual and mid-core. The initiative aligns with the gaming industry’s promotion of the Made in India vision. The news comes nearly two months after Nazara unveiled its new publishing division.
4 shortlisted studios
Nazara Technologies has chosen five creative games for publication as part of the partnership, offering Indian game developers strong support and distinctive experiences.
- Gravity Shooter, a 2D action game from Smash Head Studios
- World Cricket League, a 3D multiplayer cricket game from Wandermind Labs
- Hacked: Password Puzzle, a puzzle from Pixcell Play
- Laser Tanks, a role-playing game, and Paperly, physics-driven gameplay from ATG Studios.
The new Nazara SDK’s cutting-edge artificial intelligence (AI) tools, which are integrated throughout Nazara Tech’s publishing division, will foster the expansion and advancement of game developers. This calculated action is in line with the company’s objective of developing homegrown talent and assisting in the expansion of the gaming sector in the nation.
Nazara Tech’s expansion in the international gaming sector
Nazara Technologies launched Nazara Publishing, its publishing division, in October intending to leverage India’s growing potential as a global center for gaming. The gaming major intends to collaborate with international developers to localize and distribute games created in India, as well as publish games created by Indian developers worldwide through this division. Game developers in India and around the world have responded very well to Nazara Publishing since its founding. The Indian gaming major provides both monetary investment and all-encompassing assistance, which includes user acquisition, mentoring, and live operation knowledge.
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Financial commitments toward the Indian gaming market
The company stated that during the next 12 to 18 months, it intends to release up to 20 games for mobile, Web3, virtual reality (VR), and PC, with an investment ranging from INR 1 crore to INR 3 crore per game. Additionally, Nazara Technologies will help developers with game design, localization, data analytics, beta testing, quality assurance, and strong distribution through strategic platform partnerships and user acquisition expenditures. Industry leaders and experts, such as Akshat Rathee, co-founder of Nodwin Gaming, Sudhir Kamath, founder of Nazara Technologies, and founder of Nazara Technologies, Nitish Mittersain, will be available as mentors to developers.
Additionally, the business has established a specific website for game developers who are interested in working with Nazara to publish their works on PC, VR, Web3, and mobile devices. Through platform partnerships, it will help developers with game design, localization, data analytics capabilities, quality assurance, beta testing, advanced monetization, and prudent user acquisition spending in addition to strong distribution.
Nazara Publishing Unit
Speaking about the new alliance, Nitish Mittersain, Jt. Managing Director and CEO of Nazara Technologies expressed his excitement about the partnership and emphasized the company’s dedication to providing Indian game developers with strong support and distinctive gaming experiences. Additionally, he said that the Nazara Publishing unit will support the advancement of game developers with the new Nazara SDK’s cutting-edge AI-led tools. The company operates a gaming and sports media platform and is present in India as well as other emerging global markets like North America and Africa.
Acquisitions and Partnerships
Nazara Technologies has strengthened its product line in recent years by strategically acquiring businesses such as SportsKeeda, Nodwin, and others. Additionally, the business raised its majority ownership of mobile game developer Nextwave earlier this year. The success of Nazara Technologies can be attributed to its flexibility, strategic vision, and in-depth knowledge of the Indian gaming market.
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Etisalat and DCT- Abu Dhabi Partner to Revolutionize Gaming in MENA
Telecom operator Etisalat by e&, based in the United Arab Emirates, and the Department of Culture and Tourism-Abu Dhabi, have announced a ground-breaking collaboration. By establishing “Arena Esports,” the partnership hopes to transform the Esports scene in the Middle East and North Africa. It is a comprehensive digital gaming platform that will serve as the backbone of the regional gaming industry.
A strategic partnership to propel the gaming ecosystem.
The goal of Arena Esports is to accelerate the evolution of Esports. It embodies the common goals of Etisalat by e& and DCT-Abu Dhabi to lead the MENA region’s Esports league, develop up-and-coming gamers, and raise regional events to the level of global gaming events. Through this new partnership, both organizations’ distinct strengths will be utilized to build a long-lasting and cutting-edge Esports environment. Over the next five years, the project intends to create and manage an Arena Esports league and related competitions, with an emphasis on the United Arab Emirates.
A comprehensive gaming experience
360-degree gaming has been claimed by Arena Esports. It will offer a wide variety of opportunities to players of all skill levels. These will include players from newbies to seasoned pros. It will offer the opportunity to participate in competitive tournaments and special events. In addition to participating in thrilling competitions, players can earn monthly points, gain access to special events, communicate with community servers, and engage in exclusive interactions with influential gamers. It appears that obtaining access to the platform requires registering for a free membership. Furthermore, the platform will provide subscription plans with exclusive features.
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Recognizing the potential of a thriving sector
The establishment of Arena Esports comes soon after the visionary Dubai Program for Gaming 2033. The initiative aims to establish Dubai as a global hub for gaming and create 30,000 new jobs in the industry by 2033. DCT- Abu Dhabi claims that over the course of the next five years, the UAE-focused project intends to create and manage Arena Esports Leagues and related competitions.
With its low latency, captivating challenges, and exclusive digital content, Arena Esports promises an uninterrupted gaming journey. Nine out of ten adults in the UAE play video games. This makes the country the highest percentage of adult gamers worldwide. The gaming market is predicted to reach $5 billion by 2025.
Here’s what they said
HE Adnan Al Awadi, Support Services Executive Director at DCT Abu Dhabi, said:
Our alliance with Etisalat by e& is a testament to our commitment to growing the creative industries, of which gaming and Esports is a key pillar. This synergy aims to boost the gaming ecosystem in the UAE and the MENA region, and we are eager to see the positive impact.
Khaled Elkhouly, Chief Consumer Officer, etisalat by e& added,
At etisalat by e&, we recognise the unlimited potential of this fast-growing sector, which has more than 377 million subscribers in the MENA region. In our journey of technological transformation we aim to exceed our customers’ expectations. Our partnership with DCT Abu Dhabi reinforces our commitment to the gaming community and promises an unprecedented transformation in the sector. By integrating cutting-edge cloud and AI technologies, etisalat by e& is committed to the growing Esports industry and realising its vision of superior offerings and services.
Read More: Indian Gaming Firms are Eyeing the Brazilian Market. Explore Why!
Indian Gaming Firms are Eyeing the Brazilian Market. Explore Why!
India is becoming a major gaming market; by 2028, it is expected that the industry will grow to $7.8 billion. Younger demographics, changing IT infrastructure, growing usage of mobile devices, and fast internet connectivity are the main drivers of the Indian gaming market. This growth is being further accelerated by the incorporation of technologies like augmented reality (AR) and the metaverse into computer and console games. The growth of the industry is also being aided by the government’s encouragement of game development, the increase in female leadership, and the move toward mobile and multiplayer gaming. Yet why are Indian gaming companies looking to Brazil? Let’s delve deeper into this article.
Indian gaming market
India, which has one of the largest youth populations in the world, is expected to be among the top markets for the gaming industry. One of the main reasons propelling the nation’s market growth rate is the expanding IT infrastructure, which is being fueled by the growing use of smartphones and high-speed internet. Everything from the value of localization to player preferences for in-game revenue Indian players use video games to help them decide which business decisions to make. As per the All-India Gaming Federation, India is the country that downloads the most mobile games (15 billion downloads annually), followed by the US and China.
Brazil, the land of new opportunities
Brazil’s gaming market is very similar to India’s, so Indian game companies are hoping to introduce their products there. This is attributed to the tighter regulations and higher costs associated with acquiring new customers that are driving this initiative. Brazil is the fifth largest gaming market in the world by player count, and it ranks fourth in the world for mobile games with 5 billion downloads. A report claims that it is one of the Latin American markets with the fastest growth rate. Brazil also has a young population with more people having affordable, high-speed internet access.
Additionally, Brazil’s gaming revenue ranks 10th globally, with projections of $446.10 million market revenue in 2027. Gaming companies are excited about Brazil’s increasing average revenue per user (ARPU), in addition to the country’s rapidly increasing smartphone penetration. Brazil is a rich land of opportunity because of all these factors, which is why Indian gaming companies have decided to invest more and make plans to establish a presence in the country in the upcoming years.
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Possibilities for growth
Investigating developing markets like Brazil can help game studios reach a more varied and interested audience through cost-effective customer acquisition. Brazil is a market full of opportunities and excitement. Therefore, Indian gaming firms are now eyeing the Brazilian market. In a few aspects, the typical Brazilian gamer is remarkably similar to the typical Indian gamer. According to Brazil’s Central Intelligence Agency, 16.5% of the country’s population is between the ages of 15 and 24. Both of these markets share a similar user profile and set of preferences. Both have a strong fan base for casual games like HopScotch and hardcore games like Battle Grounds, Free Fire, and Call of Duty.
Tightening gaming laws in India
Large and small gaming companies operating in India have recently had to reevaluate their plans due to new regulations. This holds especially true for those involving the Goods and Services Tax (GST). Gaming companies are required by the new GST regulation to pay a 28% tax on player deposits. Due to the increased operating costs, gaming companies have referred to this as a fatal blow to the industry. In addition, Indian gaming companies are looking at opportunities in foreign markets. This is due to the country’s growing costs associated with acquiring new customers.
Profitability and income
Similar to India, Brazil monetizes games through microtransactions that allow users to unlock exclusive features. About 58% of respondents to a survey claimed to have made in-app purchases. These included power gems in casual games or guns in the Battle Royale game. These purchases can cost anywhere from $5 to hundreds of dollars.
Similarly, Brazilian gamers stated that getting special advantages like early access to particular features was the main reason they bought anything in-game. Brazil is not like India in that it has a higher propensity to spend money on in-app purchases. Data indicates that the ARPU of video games is $2 in India and roughly $27 in Brazil. Because of the higher in-game spending per user in Brazil, this results in a higher ARPU.
Brazil: Cultural ties and government assistance
Brazil Pix is a payment method developed by the Brazilian government. It is becoming more and more popular among gamers as a means of making purchases. Furthermore, it is a major contributor to growth. It’s a peer-to-peer payment system that works similarly to India’s UPI. Over time, gaming companies hope to use games to bridge cultural divides within global gaming communities. This entails bringing Indian games to Brazil and making Brazilian games more well-known among Indian gamers. Doing so will benefit both players and game developers.
Conclusion
The combination of creativity, technology, and cultural quirks promises an exciting future for gamers and the gaming industry in Brazil and India. The gaming companies are set to capitalize on the Brazilian market. This trip will undoubtedly offer countless opportunities for cooperation and bridging disparate communities worldwide.
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Nazara Technologies announces Nazara Publishing, its game publishing arm
Gaming and sports media company Nazara Technologies has launched Nazara Publishing, a new division dedicated to game publishing. Its goal is to release high-caliber games for the Indian and global markets. Nazara intends to work with multiple Indian and international developers to modify and release these titles for the vast Indian gaming market. Additionally, they will make it easier for games made by Indian developers to be published worldwide. The games will be available for PCs, virtual reality (VR), mobile devices, and the web3.
Nazara Publishing – the novel game publishing arm
The gaming industry in India is fortunate to have Nazara Publishing on board. The company helps developers with things like game design, localization, data analytics, quality assurance, beta testing, and distribution in addition to monetization. This is accomplished through platform partnerships and wise user acquisition spending. Developers will also have access to mentors who are leaders and experts in the industry through the Nazara Publishing platform. The overall goal is to help game studios not only launch games successfully but also overcome obstacles, grow faster, and leave a lasting impression on the Indian gaming industry. Nazara offers the top esports platform in India, Nodwin, along with PublishME for the Turkey/MENA market, Sportskeeda, and Pro Football Network for sports media.
Key Benefits of Nazara Publishing for Game Developers
- Financial Commitment: Nazara Publishing plans to release up to 20 games in the next 18 months, with a minimum investment of INR 1 crore per game. It will assist developers in covering their expenditures.
- Expertise: Developers will have access to knowledge about game publishing, marketing, and distribution thanks to Nazara Publishing.
- Comprehensive Network: Nazara Publishing has a robust gaming industry partner network that will enable developers to reach a larger audience.
- Promotion: Nazara Publishing is dedicated to providing worldwide exposure to Indian game developers.
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India’s maturing gaming market
The development takes place at a time when user behavior and gaming habits indicate that India’s gaming market is developing. The industry is about to undergo a shift in terms of size and willingness to pay. This is motivating local studios to try and make games that are bigger, better, and more intricate so they can eventually compete with their global counterparts.
In Asia, India’s video game market is expanding at the quickest rate. It is anticipated that in 2023, gamers’ revenue from PC and mobile games will total $868 million. In FY22, revenues from the online gaming sector in India amounted to $2.6 billion. Moreover, it is anticipated to grow at a 27% CAGR to $8.6 billion in FY27.
Nazara Technologies’ investment secured
The Nazara Tech Board authorized the issuance of equity shares at a face value of INR 4 each. The goal is to raise up to INR 410 crore from SBI Mutual Fund in September. On July 10th, the board gave its approval to a proposal to issue equity shares in order to raise up to INR 750 crore. By investing INR 4.15 crore in Israel-based game developer Snax Games Ltd. in August, the company was able to acquire five-year exclusive rights to publish its games in the Middle East and India. Already publishing titles like World Cricket Championship, Animal Jam, and Kiddopia, the company’s revenue in FY23 came from these games alone.
Here’s what they said
Nitish Mittersain, CEO and Joint MD, of Nazara Technologies said,
Nazara Publishing is poised to revolutionize India’s gaming landscape, aiming to become the country’s premier game publishing platform. We are dedicated to nurturing both Indian and global game developers, providing resources, expertise, and a robust network to bring top-tier gaming experiences to India’s vast audience. With a special focus on supporting Indian developers, Nazara sees a significant opportunity in the Make-in-India initiative, and as part of this initiative, we will also promote Indian game developers globally.
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Revolutionizing Philippine Gaming: Adscholars and iion’s Dynamic Partnership
The leading ad tech provider Adscholars has partnered with global gaming advertising leader iion. This collaboration aims to redefine the gaming advertising landscape in the Philippines amidst an industry boom, boasting a gamer population of 43 million, according to Newzoo. The partnership brings one-of-a-kind technology and programmatic-enabled gaming inventory solutions to the Philippine market. iion will scale immersive gaming solutions in this market, using Adscholars’ programmatic expertise. It will offer multiple activation options and unique experiences to connect with consumers on their preferred platforms.
The collaboration between Adscholars and iion arrives at a crucial juncture, as brands seek to reach the gaming audience in the Philippines. This partnership enables iion to utilize Adscholars’ market knowledge and brand collaborations, resulting in immersive and contextually fitting in-game, around the game and away from the game advertising encounters. iion’s immersiion is the first platform to connect game publishers and brands seamlessly across all digital worlds, providing a holistic targeting experience in-game, around the game, and beyond.
Gaming Boom in Philippine Market
Recent reports indicate that the Philippines is among the select group of five nations poised to emerge as a major gaming market within the Asia Pacific region. According to a comprehensive study conducted by Newzoo, a prominent provider of market intelligence within the gaming industry, the Philippines boasts a substantial gamer population of 43 million, with a projected growth rate of 14.3 percent spanning from 2020 to 2023. The growing popularity of online gaming in the country is driven by faster internet availability, more smartphone users, and the thriving eSports industry. The strategic partnership between Adscholars and iion places them at the forefront of innovative game advertising in the Philippines, ushering in a new era of industry growth amid the nation’s burgeoning gaming landscape.
Srikanth Rayaprolu, CEO of Adscholars said, “We are thrilled to announce our collaboration with iion, a prominent advertising platform that extends its reach across diverse gaming environments. As the gaming industry continues to flourish in the Philippines market, Ad Scholars, in partnership with iion Gaming, is set to provide brands with an exceptional opportunity to connect with gamers both within the gaming realm and in its periphery. This collaboration promises exciting creative possibilities that will actively engage your brand with this dynamic gaming audience.”
Yun Yip, iion’s Chief Commercial Officer says, “With AdScholars, we are poised to reshape the game advertising landscape in APAC. Our collaborative efforts and platform will empower brands and agencies to explore new ways of engaging with an ever growing audience, whilst delivering superior marketing outcomes in game advertising. A successful gaming strategy is a now possible, accessible and measurable”
True Gamers invests $13.5 million in the UAE Gaming Scene
Image Credit: Hypernia
True Gamers, a Moscow-based leading eSports company is geared up to completely reform the cyber games landscape in the MENA region. They plan to launch a series of first-of-its-kind projects to establish a network of gaming lounges across the region. This $13.5 million dollar investment will take place by the end of 2023. It will be used to organize tournaments attracting gamers and organizers from around the world.
Anton Vasilenko, co-founder, and CEO of True Gamers said,
Over the next two years, we’ll be investing significantly in the future development and expansion of eSport lounges in the UAE and across the broader Middle East region. By the end of 2023, we plan to invest $13.5 million into developing our gaming centers in the UAE alone.
Mr. Vasilenko had recently announced a partnership with Baz Station Interiors, a Dubai-based gaming room design company as an entry plan in the Emirates. Baz Station Interiors will provide True Gamers with portable interiors that could be transferred and installed in distinct locations. The eSports company intends to renovate the eSports industry to help with social good. Their commitment to innovation resulted in the launch of robot waiter dogs. People with disabilities will be able to remotely control them. However, the CEO stated that the company’s joint venture with Baz is only limited to interior development.
Rise in GCC Gaming Landscape
According to a report by Boston Consulting Group titled ‘Game Changer,’ about 60% of the population in the Middle East identified themselves as gaming enthusiasts, driving half the share of mobile gaming app downloads. The Middle East and North Africa region, more specifically, the GCC arena has observed a significant progression. It has developed into a nerve center for the gaming and eSports industry. As a result, this flourishing sector has drawn the attention of both players and spectators alike. It has also fascinated investors, organizations, and sponsors.
The availability of high-speed internet and the progressive gaming frameworks have been the major contributors for the surge in the eSports and gaming industry. The GCC countries have witnessed a substantial amount of investment in technology and connectivity. Because of these developments, gamers can participate in a seamless online gaming experience. Additionally, the region hosts dedicated gaming facilities for hosting competitions, and events and increasing visibility. At the same time, modern and hi-tech equipment, expert training, and space to connect with fellow gaming enthusiasts allow players to compete in major international tournaments.
Apart from that, the government’s encouraging policies and initiatives have nurtured the industry’s growth. One such noteworthy example is the DMCC gaming center, launched by the Dubai Multi Commodities Center. This space provides a platform for professionals to connect, team up, and discover new opportunities.
All eyes are on Abu Dhabi
True Gamers has opened gaming spaces in 6 locations in Dubai, including the reputable Dubai Mall. The company now looks to expand its reach and assess potential markets in the rest of the Emirates. They currently have their sight set on Abu Dhabi. Abu Dhabi enjoys the benefits of in-house support and events like Yas Gaming Month, because of its partnership with industry players like Ubisoft and Unity. AD Gaming, an initiative by the Abu Dhabi government for driving and creating self-reliable gaming, pledges to make Abu Dhabi the principal gaming hub in the UAE. They have forged a relationship with SAWA, to localize gaming video games, especially the ones developed in China. The objective is to make the vast gaming library more accessible for Arabic speakers. This cooperation will facilitate the Chinese eSports company to expand internationally via Abu Dhabi.
Plans of expansion in the MENA region.
The plan to arrange the very first tournament in the True Gamers club and launch new lounges in Dubai is currently in the pipeline. The company is in talks with charities and businesses for funds to make the dream of entering the UAE market a reality.
The company plans to penetrate the Saudi Arabian market. They have already taken measures to research the market and understand the customer needs. According to the BCG’s report, Saudi Arabia is the industry leader in the gaming sector. Saudi Arabia has approximately 45% market to its name. It boasts a value that exceeds $1.8 billion dominating the mobile gaming market. It contributed to 65% of the revenue. They even plan to expand in Egypt. As such, they are looking for prospective local partners.
By 2027, the gaming industry in the Middle East and North Africa region is predicted to reach $6 billion. These figures are expected to be double what it was in 2021. This just suggests that there is a ton of room for growth in these untapped regions.
Read More: Is 28% GST on Online Gaming A Setback For Gaming Industry?
Is 28% GST on Online Gaming A Setback For Gaming Industry?
The GST Council announced a decision stating that online games would be subject to 28% GST. This decision has come as a shock to the recently flourishing gaming industry in India.
The report published by the GST Council stated that 28% GST would be imposed on total winnings, including the platform fee. Finance Minister Nirmala Sitharaman commented after the GST Council meeting, “We will bring an amendment to GST law to include online gaming, and will be taxed at 28 percent on its full face value.” She also mentioned that the decision was not made under the pretext of aiming for a specific industry.
The gaming industry is currently booming, providing vast employment opportunities for youth in the field of IT and creative professionals such as streamers, e-athletes, engineers, etc. The gaming industry hosts around 500 million gamers and a report published by the All India Gaming Federation stated that it is set to increase by $8.6 million by 2027, growing at a CAGR of 27%.
Although the gaming industry has boomed in recent years but has seen its fair share of setbacks from the ban on PUBG to state governments imposing restrictions on games to curb gambling addiction. The industry has been very optimistic with the reforms and advancements brought in by the IT rules as well as the TDS administration on net wins. However, experts have concluded that all these would be in vain if the GST regime was not liberal with these changes.
And that’s what they said
Malay Kumar Shukla, secretary of the E-Gaming Federation said, “This is an extremely unfortunate decision, as charging 28% tax on full face value will lead to a nearly 1000% increase in taxation and prove catastrophic for the industry.”
He added that playing online games is quite distinct from gambling and that judgments by the Indian Supreme Court and High Court have confirmed that playing skill-based online games is a legal activity that is protected as a fundamental right under Indian law.
Roland Landers, CEO of The All-India Gaming Federation remarked, “The decision was “unconstitutional, irrational, and egregious”, ignoring 60 years of settled legal jurisprudence and lumps online skill gaming with gambling activities.”
He further added, “We hope that the government will reconsider this recommendation and not implement it, as it will be catastrophic for the 1 trillion dollar digit economy dream of the Honorable PM.”
Industry experts believe that this judgment negates all of the government’s past efforts to advance the gaming industry.
