Ashneer Grover, the former founder of BharatPe. This has raised concerns regarding the Indian government’s recent decision to impose a 28% tax on funds accumulated by online gaming companies. In his view. This course of action will have a significant detrimental impact on the fantasy gaming industry. Grover goes as far as encouraging entrepreneurs to consider entering politics as a means to prevent similar situations from arising in the future. This tax imposition has unquestionably struck a blow to the flourishing $1.5 billion industry. Deterring foreign investments from flowing in.
Ashneer Grover, the former BharatPe founder, has raised serious concerns regarding the Centre’s recent decision to impose a hefty 28 percent tax on funds collected by online gaming companies from their customers.
Grover, who himself owns the fantasy gaming platform Crickpe, expressed his dismay over the government’s move, stating that it would spell doom for the entire fantasy gaming industry. In a rather impassioned tweet, he even suggested that entrepreneurs should consider venturing into the realm of politics to prevent such unfortunate incidents from recurring.
In a tweet that carried despair, Grover mournfully declared, “RIP – Real money gaming industry in India.” He went on to criticize the government’s expectations that individuals would willingly invest Rs 100 to participate in a game with a mere Rs 72 winning pot (after accounting for the 28 percent gross GST). Grover emphasized that even if players were fortunate enough to win Rs 54 after platform fees, they would still have to pay a burdensome 30 percent TDS on their winnings.
Expressing his disappointment with a tinge of sarcasm, Grover mournfully stated, “It was good fun being part of the fantasy gaming industry – which stands murdered now.” He lamented the potential loss of $10 billion, referring specifically to his own company Crickpe, which allowed users to assemble virtual teams comprising the most skilled real-life players and earn points based on their actual performance.
In a call to action, Grover urged startup founders to consider entering the field of politics and ensuring their representation to prevent the occurrence of similar incidents in the future. He warned of a bleak future marked by a series of beleaguered industries if this issue remains unaddressed.
Grover’s experiences as a former judge on Shark Tank India seemingly influenced his perspective, motivating him to highlight the need for entrepreneurial voices to be heard within the political sphere.
The Centre’s decision to impose such a substantial tax has dealt a severe blow to the flourishing $1.5 billion industry, which had gained significant popularity and attracted substantial foreign investments.
Finance Minister Nirmala Sitharaman defended the move, claiming that it was taken in consultation with the states and with no intention of harming the industry. However, the concerns raised by Ashneer Grover and others suggest that the impact of this decision may be far-reaching and require further examination.
