nazara: Nazara founder explains what 28% GST could mean for the gaming industry

“The silver lining in the cloud is that we welcome any clarity that emerges in our industry. The downside is that if taxes are too aggressive, it can stunt the potential growth of the industry,” says Nitish Mittersain, CEO & Founder, Nazara Tech.


Who better than you to really understand what the 28% tax will mean for the gaming industry as a whole? It seems that the GST council wants this sector to be taxed at the highest bracket of 28%. What impact will this have?
Some points. First, this tax increase from 18% to 28% is not in itself the issue. The industry has proactively welcomed it. I think the question is really what is the tax on? Is it on rake or is it on platform fees? Or is it on the deposit or entrance fee?

Overall, it largely depends on rake or platform fees, but we’ll have to see what the fine print is and what’s really going to happen here. The big picture is that the gaming industry in India is in its infancy and there is still a long way to go. With or without tax increases, the industry will continue to grow. There may be a few hurdles in the meantime, but on the plus side, Nazara has always said that we’ve been a little conservative on the skill-based real money gambling space due to the lack of clarity.

So at least the silver lining in the cloud is that we welcome any clarity that emerges in our industry. The downside is that if the taxes are too aggressive, it can stunt the potential growth the industry may have in the near future.

Isn’t it high enough to keep players away? In that sense, it shouldn’t impact businesses like yours. I assume you’re still going to pass on the tax?
Yes, again, specifically with respect to Nazara, our exposure to the real money skill-based gaming space where these taxes actually apply is around 5%. So there is a very limited impact on us specifically from this change.

Back to recommendation stories

But if the 28% tax is an entry fee for skill-based real-money gambling businesses, then it’s much more than the commission they earn or the rate they earn on each transaction and , therefore, it can completely upset the economy of that. business and that’s really where the challenge lies.

Comments are closed.