The online 'gaming' sector was hit was a 28% GST in the last GST Council meeting, and Real Money Gaming companies and investors expressed their concern about the same. Now, 30 investors involved in the RMG industry have penned a letter to the PM regarding the same. Tiger Global, Peak XV and Steadview Capital are a few of the investors who wrote to the PM about their concerns and that this imposition could be detrimental to the industry as a whole in a big way.
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Top Investors in the RMG Industry Write to PM against 28% GST
According to the letter, the investors are trying to set up a meeting with the Prime Minister to discuss the matter in detail. The letter further details the contribution of real money gaming in the sector and says it will only grow in the coming years. In 2022, the sector stood at Rs 13,500 crore and will rise to Rs 23,100 crore in 2025.
Big names who wrote to the PM include Think Investments, Clairvest Group, Tribe Capital, Kalaari Capital, ChrysCapital, Orios Venture Partners, Lumikai, and more. Steadview Capital is also a major player in the industry with stakes in apps like Dream11 and others. Roland Landers, CEO of All India Gaming Federation (AIGF) said:
"We believe this decision by the GST Council is unconstitutional, irrational, and egregious. The decision ignores over 60 years of settled legal jurisprudence and lumps online gaming with gambling activities."
At the 2023 GST Council Meet, finance minister, Nirmala Sitharaman announced a 28% imposition on proceeds from online gaming and said there's no difference between a game of skill and a game of chance. This decision came as a shock to the industry and many claimed that this would lead to the downfall of the industry and will lead to people losing jobs.