Government Needs To Support Gaming Industry To Stop Foreign Companies Gaining

By Author: skyexchange-id.info
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There are close to 600 million users of online games in the country. Nearly 25 % of these gamers are for pay and play subscribers. The portion of gamers who come for real money games is increasing as evident from the traffic on sky exchange registration and other major online gaming platforms offering real money games.

Real money games are worth US $ 2 billion business according to the report on gaming published last year, 2023. The professional gamer base is increasing in the country. But there has been some interruption in the growth of the base. The hurdle came when a higher goods and services tax of 28 % was imposed on the face value of a bet. Obviously this has affected the gamers who are professional and come to gaming for real money games. Non- real money games are still at the lower level of taxation at 18 %.

The gaming industry is concerned that this may create a shift in the preference of Indian gamers. They feel that some foreign based real money gaming companies are advertising in the country through online channels. These companies, based off shore, do not pay taxes in the country. They operate in ...
... countries where the taxation on gaming is very low and almost negligible.

Since they do not pay taxes in India they offer free services with the same higher multiple rewards on successful betting. There is a real possibility that gamers from India will be attracted towards them. Not only will this trend reduce revenue collection for the government of India, but it also will have adverse impact on India gaming companies.

If there is any decline in traffic towards the gaming companies being run from India, the investor community may not be as eager to invest as they are today. Already there has been some decline in revenue inflow due to higher taxes. But the official cannot accurately mention the exact loss of revenue.

Though online games like skyexchange cricket have been offering joining bonus and referral bonus to gamers, they have to spend a huge portion of their income on offers. For some companies this is not sustainable.

As things move, there will be greater clarity on this front. But the fact remains that the government has to come up with some scheme or other to ensure that gaming companies in the country, especially in the real money gaming sector stay financially viable.

The major online real money gaming companies have resources to not only survive but prosper. The strength of platforms offering skyexchange cricket lies in adaptability and going for strategic transformation. But a lot others, small and startups may find it difficult to deal with a higher taxation regime.

This is creating a desire among gamers in the country to try foreign based real money gaming companies. There is another important issue related to foreign gaming companies.

A gamer who comes on a real money gaming platform operated within the country for betting, says sky exchange registration incorporates a fraud prevention mechanism.

Not only do they avoid taxes, but almost all of them do not ensure any consumer protection. They do not believe in responsible gaming practices.