GST hike expected to moderate monetization in India’s online gaming sector
A recent joint report by real money gaming (RMG) firm Winzo and the Interactive Entertainment and Innovation Council (IEIC) suggests that despite the growing base of online gamers willing to make payments, the recent increase in the goods and services tax (GST) is likely to affect monetization per user.
The report is reviewed at length in an Economic Times article, which highlights that while “Pay to Play” games have historically been the largest revenue source and a key driver for India’s gaming sector, their share is expected to decrease over the next five years due to the high tax burden. This change is expected to affect user monetization, driven by recent tax policies.
IEIC includes members such as Courtside Ventures, Griffin Ventures, Hashbyte Studios, and Chennai Games, in addition to Winzo. According to Saumya Singh Rathore, co-founder of Winzo, IEIC functions as a think tank to facilitate investments in gaming firms in India.
