India’s New Online Gaming Tax Will Stifle Foreign Investment, Put $2.5 Billion Investment at Risk: Gaming Firms

Many Indian ministers view bets on online gaming platforms as a "social evil."

Advertisement
By Reuters | Updated: 16 July 2023 05:10 IST
Highlights
  • Top investors including Tiger Global and Peak XV have made investments
  • Gaming companies including MPL signed the letter dated July 14
  • Revenues of fantasy gaming platforms rose 24 percent during IPL

Users can create a fantasy cricket team for as little as Rs. 8

Photo Credit: Reuters

India's new 28 percent tax on online gaming companies will stifle foreign investment and put $2.5 billion (roughly Rs. 20,500 crore) already invested in the sector at risk, more than 100 gaming firms have said in a letter to India's finance ministry.

India this week announced the tax on the funds that online gaming companies collect from their customers. Games such as fantasy cricket have became increasingly popular in recent years, but have also raised concerns about addiction among players.

Advertisement

Top investors including Tiger Global and Peak XV, previously known as Sequoia Capital India, have invested in Indian gaming companies such as Dream11 and Mobile Premier League.

In the letter dated July 14, gaming companies including MPL urged the finance minister to rethink the move, highlighting the impact on jobs and investment.

Advertisement

The tax would deter potential investors, both domestic and foreign, from considering the online gaming sector in India as a viable investment destination, the letter said, and added that the current $2.5 billion (roughly Rs. 20,500 crore) plus in investments is at stake based on this decision.

India's finance ministry did not respond to an email request for comment, sent outside usual business hours. Federal Revenue Secretary Sanjay Malhotra told Reuters in an interview this week that the government believes social as well as economic purposes will be served by the tax.

Advertisement

Many Indian ministers view bets on online gaming platforms as a "social evil", Malhotra had said.

Revenues of fantasy gaming platforms rose 24 percent during the Indian Premier League cricket season from a year earlier to more than $342 million (roughly Rs. 2,800 crore), with over 61 million users participating, Redseer consultancy said this month.

Advertisement

Users can create a fantasy cricket team for as little as Rs. 8.

© Thomson Reuters 2023


Will the Nothing Phone 2 serve as the successor to the Phone 1, or will the two co-exist? We discuss the company's recently launched handset and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Apple Watch Series 12 Review: Familiar Looks, Tracks Like a Beast
  2. Best Laptops Under Rs. 90,000 in India to Buy During Amazon, Flipkart Sale
  3. Best TVs Under Rs. 50,000 in India to Buy During Amazon, Flipkart Sale
  1. Nothing Deals Revealed for Phone 4 Series, CMF Buds Lineup, More Ahead of Flipkart's Big Billion Days Sale
  2. F1 25, Hunt: Showdown 1896 and Earth Defense Force: World Brothers 2 Join PS Plus in October
  3. Samsung Galaxy A08 Launched in India With MediaTek Helio G99+ SoC, 6,000mAh Battery: Price, Features
  4. Samsung Galaxy Buds On Unveiled With Clip-On Design, Up to 9.5 Hours of Battery Life: Price, Features
  5. OnePlus Nord Buds 3r Gets Jade Mist Colour Variant in India: Price, Specifications
  6. Crypto Hack Losses Reach $768 Million in September, Marking 2026’s Worst Month
  7. Nike Apex Racing Shoe Launched With Double-Stacked Air Zoom Platform, Carbon Fibre Flyplate
  8. India Sees Stronger Centralised Crypto Exchange Inflows Than Singapore, Australia
  9. Google Announces Gemini 4 Argon With Longer Output Limit: See Features, Availability
  10. Oppo F35 Pro 5G, Oppo F35 5G Appear on Geekbench With MediaTek Chipsets Ahead of India Launch
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.