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. Last week, India 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.
The tax comes as online gaming has become a massive business in India, with the sector growing at a compounded rate of around 28-30% annually over the past five years. Driven by affordable smartphones and cheap mobile data, it has attracted $2.5 billion in investment from overseas companies. But the new GST is likely to dampen growth and hit player winnings, according to investors.
Investors told Modi that the tax would discourage players, leading to less investment and a funding winter in the industry. They also said it would erode investor confidence in the sunrise sector, which is helping to build India into a gaming superpower.
Aside from the economic concerns, experts say the gaming industry may also be at risk of addiction among young people. Video game addiction can cause behavioral problems, unhealthy coping mechanisms, and, in severe cases, even delusional thinking. The problem can occur when playing games raises dopamine levels in the brain, causing people to seek rewards and engage in addictive behaviors.
Experts agree that it is essential to understand the signs of addiction and seek help if you suspect you or a family member is suffering. It is also essential to monitor how much time your children spend on games and ensure they’re using age-appropriate content. Talking to a behavioral health professional or addiction specialist can help determine treatment options for 18+. Wagering & Fantasy Cricket is prohibited in some states. Please check your state laws before you play. If you are underage, leave this site. Your winnings will be forfeited if you are caught.
