Impact of the new GST policy on Indian gamers

At the 50th GST Council meeting, it was declared by the Finance Ministry that a 28% GST would be applied to the full value of deposit for online games. The updated GST policy has the potential to influence the participation of high value players on rummy apps, and it is also expected to affect major online real money gaming companies in India.

Real money gamers across India

In terms of numbers, there are 507 million gamers in India of which 120 million gamers are real money gamers as per the report by TechCircle. The biggest ask of this new policy is the imposition of a 28% GST on the full value of deposits. 

Gamers who pay and play on rummy apps are more concerned about the cost of gaming than casual gamers as the overall cost of playing will experience a significant increase due to the implementation of a 28% GST, which will be applicable to the total amount deposited by the players. 

Consequently, gamers will have a limited budget to spend on their games. When players stop investing in the game, their potential winning will also decrease. This situation may encourage players to transition to offshore platforms. 

Eventually, all these factors significantly reduce the amount of winnings that players get to keep for themselves. Players might end up with a relatively small portion of their total winnings after accounting for these deductions.

Overall cost of participation in real cash games

As the overall cost of participating in the game on these rummy apps continues to rise and the chances of winning on this platform decline, gaining the trust of players may become a complex problem to resolve. 

When players fail to achieve their desired gratification on these rummy apps, they may start seeking alternatives on offshore platforms to avoid GST. This may deprive the Indian government of tax revenue but also affect the long-term revenue flow of the Indian gaming industry. 

Also, in order to trust offshore platforms, rummy players need to take a big leap of faith. Playing on offshore platforms may make them more susceptible to fraudulent activities or financial losses. 

Lastly, these offshore platforms may lack the same level of regulations and ethics as domestic platforms that adhere to local regulations. To reduce the growing influence of offshore companies targeting consumers seeking alternatives due to the high 28% GST, the government may tighten the rules for real-money gaming.

Popularity of rummy in India

There may be another side to it as well. 2023 saw many changes in the sphere of online rummy. There can be some impact initially but the craze of online rummy games among Indian players is likely to persist. It is a sort of a part of Indian Culture, where rummy is played with family members during festive season get-togethers and night outs.

Owing to the popularity of rummy in India, there are decade old online rummy platforms which have stood the test of time and remained popular among their user bases. Also, seasoned gamers are likely to get accustomed to this new GST Policy.