Nazara Tech, Delta Corp stocks tank upto 20% after GST council levies 28% tax on online gaming

Nazara Tech shares plunged 14% to Rs 605 and Delta Corp shares tanked 20% to Rs 197.45 today after the Goods and Service Tax Council imposed a 28% tax on online gaming, casinos and horse racing on Tuesday. The tax will be levied on the full value of the bet made, instead of just the platform fee. Meanwhile, BharatPe co-founder Ashneer Grover slammed the government’s decision. He said that the move will murder the fantasy gaming industry and it is time for entrepreneurs to enter politics or else the government will do the same for every industry. 

“RIP – Real money gaming industry in India. If the govt is thinking people will put in Rs 100 to play on Rs 72 pot entry (28% Gross GST); and if they win Rs 54 (after platform fees)- they will pay 30% TDS on that – for which they will get free swimming pool in their living room come the first monsoon – not happening ! It was good fun being part of the fantasy gaming industry – which stands murdered now. $10 Bn down the drain in this monsoon. Time for startups Founders to enter politics and be represented – or this is going to be spate industry after industry,” Ashneer Grover tweeted.

Nazara Technologies, on the other hand, clarified that the 28% GST proposed by the GST Council on online gaming, once implemented, will apply only to the skill-based real money gaming segment of its business. The contribution of the segment to Nazara’s overall consolidated revenues for the financial year FY23 was 5.2%, the company said. “To the extent required, the company will proactively take steps to mitigate any potential impact to this segment of our business, and we anticipate minimal impact to our overall revenues,” Nazara Tech said.