Online gaming is one of the fastest-growing consumer internet businesses in India with a current valuation of roughly $1.5 billion and a mammoth growth trajectory.
India has about 659 million smartphone users. Combine the mobile users (the virtual environment) with India’s gambling industry and the country’s cricket betting business (already valued at $2 billion US), and experts are predicting the gaming market will reach $8.6 billion by 2027.
India is reportedly in the number one spot for game downloads with 15 billion last year, which is more than the US and China combined. Experts fear the tax rise will result in a growth rate reversal.
A tax burden where taxes exceed revenues will not only make the online gaming industry unviable but also boost black-market operators at the expense of legitimate tax-paying players, further undermining the industry’s image and capacity to survive,” said Malay Kumar Shukla, Secretary of E-Gaming Federation in a statement.
According to Tracxn, there are well over 1,000 gaming startups in India attracting domestic and foreign investors.
India has about 659 million smartphone users. Combine the mobile users (the virtual environment) with India’s gambling industry and the country’s cricket betting business (already valued at $2 billion US), and experts are predicting the gaming market will reach $8.6 billion by 2027.
India is reportedly in the number one spot for game downloads with 15 billion last year, which is more than the US and China combined. Experts fear the tax rise will result in a growth rate reversal.
A tax burden where taxes exceed revenues will not only make the online gaming industry unviable but also boost black-market operators at the expense of legitimate tax-paying players, further undermining the industry’s image and capacity to survive,” said Malay Kumar Shukla, Secretary of E-Gaming Federation in a statement.
According to Tracxn, there are well over 1,000 gaming startups in India attracting domestic and foreign investors.