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☆ India demands $12 bln in tax from online gaming firms -govt source
▼ + stars: | 2023-10-25 | by ( ) www.reuters.com time to read: 1 min

NEW DELHI, Oct 25 (Reuters) - Indian tax authorities have served notices to online gaming companies demanding about 1 trillion rupees ($12.03 billion) in taxes that they have allegedly evaded, a government source said on Wednesday. In August, India decided to impose a 28% tax on online gaming companies on the total funds deposited to play online games, leading to some firms like Mobile Premier League laying off employees. "The amount for which show cause notices have been issued to online gaming companies is around 1 trillion rupees," the government official, who did not want to be named, told reporters. The finance ministry did not immediately respond to a request for comment. ($1=83.1180 Indian rupees)Reporting by Nikunj Ohri; Writing by Sakshi Dayal; Editing by Clarence Fernandez and Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.

Persons: Nikunj Ohri, Sakshi Dayal, Clarence Fernandez, Muralikumar Organizations: Mobile Premier League, Thomson Locations: DELHI, India

NEW DELHI/BENGALURU, Aug 8 (Reuters) - Indian gaming app Mobile Premier League will lay off 350 employees as it takes steps to "survive" a tax imposed by the Indian government on online gaming companies, according to an internal memo seen by Reuters on Tuesday. The move comes on the back of the government's decision last month to impose a 28% tax on funds that online gaming companies collect from customers. The new rule will increase the company's tax burden by 350%-400%, MPL CEO Sai Srinivas said in the memo, adding that the company is revisiting expenses related to their server and office infrastructure. The source could not be named as they are not authorised to speak to the media. Reporting by Aditya Kalra; Additional reporting by Biplob Kumar Das and Ashish Chandra; Editing by Sonia CheemaOur Standards: The Thomson Reuters Trust Principles.

Persons: Sai Srinivas, Srinivas, MPL, Aditya Kalra, Biplob Kumar Das, Ashish Chandra, Sonia Cheema Organizations: NEW, Mobile Premier League, Reuters, Thomson Locations: NEW DELHI, BENGALURU

NEW DELHI, July 21 (Reuters) - Tiger Global, Peak XV and Steadview Capital are among 30 foreign and domestic investors asking Indian Prime Minister Narendra Modi to review a 28% gaming tax, saying the levy would adversely impact $4 billion in prospective investments, a letter showed. India last week announced the tax on the funds that online gaming companies collect from their customers. Games such as fantasy cricket have become increasingly popular in recent years, but have also raised concerns about addiction among players. Tiger Global and Peak XV, previously known as Sequoia Capital India, have invested in Indian gaming companies such as Dream11 and Mobile Premier League. Over 100 gaming firms wrote a letter recently to the finance ministry with a similar request, saying the tax will stifle foreign investment and put $2.5 billion already invested in the sector at risk.

Persons: Narendra Modi, Aditya Kalra, Chris Thomas, Tanvi Mehta, Savio D'Souza, Kim Coghill, Muralikumar Organizations: Tiger, Steadview, Indian, Reuters, Tiger Global, Sequoia Capital, Mobile Premier League, Thomson Locations: DELHI, India, Sequoia Capital India, New Delhi

☆ Indian gaming firms say new tax will stifle foreign investment
▼ + stars: | 2023-07-15 | by ( Aftab Ahmed | ) www.reuters.com time to read: +2 min

NEW DELHI, July 15 (Reuters) - India's new 28% tax on online gaming companies will stifle foreign investment and put $2.5 billion 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. 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. Many Indian ministers view bets on online gaming platforms as a "social evil", Malhotra had said.

Persons: MPL, Sanjay Malhotra, Malhotra, Arpan Chaturvedi, Aftab Ahmed, Aditya Kalra, David Holmes Organizations: Tiger Global, Sequoia Capital, Mobile Premier League, Federal, Reuters, Indian Premier League cricket, Thomson Locations: DELHI, India, Sequoia Capital India

☆ India tax panel may not reach consensus on taxing online gaming - source
▼ + stars: | 2022-12-05 | by ( ) www.reuters.com time to read: +2 min

The panel has for weeks been deliberating how it should tax online gaming companies -- and whether federal tax should be imposed on only the profits of firms or on the value of the entire pool of money collected from participants. The panel is unlikely to reach a consensus this month, the official told reporters in New Delhi. Real-money online games have become hugely popular in India, prompting foreign investors like Tiger Global and Sequoia Capital to back local gaming startups Dream11 and Mobile Premier League, popular for their fantasy cricket games. India is also separately working on federal regulations for the gaming sector that research firm Redseeer estimates will be worth $7 billion by 2026, dominated by real-money games. A separate government panel tasked with rationalisation of GST rates is also discussing the 18% tax levied on health insurance, amid calls seeking a lower rate, said the official.

The much-awaited regulations are seen shaping the future of India's gaming sector that research firm Redseeer estimates will be worth $7 billion by 2026, dominated by real-money games. Tiger Global and Sequoia Capital have in recent years backed Indian startups Dream11 and Mobile Premier League, popular for fantasy cricket. Chance games - considered akin to gambling, which is mostly banned across India - were set to stay under the purview of individual state governments which would be free to regulate them, Reuters has previously reported. Modi's office and the IT ministry, which is drafting the rules, did not respond to a request for comment. One of the government sources said Modi's administration continues to be concerned about potential addiction of such platforms.

FILE PHOTO: The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, U.S., November 17, 2021. REUTERS/Andrew Kelly/File Photo/File PhotoNEW DELHI, Sept 20 (Reuters) - Indian online gaming platform WinZO has sued Google (GOOGL.O) to stop the tech giant from allowing real-money games for fantasy sports and rummy on its platform, saying that Google's doing so is discriminatory, a legal filing seen by Reuters showed. In its lawsuit filed at the Delhi High Court, WinZO said it had contacted Google on Sept. 10 to contest the updated policy, saying it was "unfair". WinZO, which is backed by U.S.-based venture firm Griffin Gaming Partners, has a valuation of more than $350 million. The lawsuit shows WinZO recorded annual revenue of about $13 million in 2020-21.

Dream11 and MPL logos are displayed in front of the Indian flag in this Illustration taken September 14, 2022. This is an addiction," said Ashwani Mahajan, an official of the Swadeshi Jagran Manch, which is seen as having significant influence on Indian policy making. The tiny remaining share of 3% users contribute 30% of the platform's revenue by playing higher ticket-sized games, one industry source estimated. Dream11 commands a valuation of $8 billion, while MPL and Games24X7 are valued at about $2.5 billion each, PitchBook data shows. "Most of the matured industry is quite clear that regulation will only help," said Barde.

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