Bengaluru-based Gameskraft has made a significant decision to discontinue its fantasy offering, Gamezy Fantasy, effective from September 18. This move comes in the wake of various challenges faced by the company, including a looming INR 21,000 crore tax evasion notice and changes in the tax landscape affecting the gaming industry.
Gameskraft is undergoing a strategic restructuring of its Gamezy super app, and as part of this transformation, users of games other than fantasy will be migrated to separate apps. This decision reflects the company's commitment to adapt to evolving regulatory and financial circumstances.
One of the primary factors contributing to Gameskraft's decision is the recent decision by the GST Council to impose a 28% GST (Goods and Services Tax) on real-money gaming activities. This change in tax policy has had a significant impact on the gaming industry, prompting companies like Gameskraft to reevaluate their offerings and business models.
Additionally, Gameskraft has been dealing with tax troubles involving the GST (Goods and Services Tax) Department. The company's INR 21,000 crore tax evasion notice has created uncertainty and financial challenges, further necessitating a strategic shift.
The discontinuation of Gamezy Fantasy underscores the complexities and uncertainties surrounding the fantasy sports sector in India, which has faced scrutiny and regulatory changes in recent times.
Despite these challenges, Gameskraft remains committed to providing an engaging and enjoyable gaming experience to its users. By separating games other than fantasy into distinct apps, the company aims to streamline its operations and better align with evolving regulatory frameworks.
This strategic decision by Gameskraft reflects the dynamic nature of the gaming industry in India, where companies must navigate regulatory changes, tax implications, and financial constraints to continue offering innovative and entertaining gaming experiences to their users.
Gameskraft's move to discontinue Gamezy Fantasy and restructure its Gamezy super app is a response to the evolving landscape of the gaming industry in India. The company's commitment to adapt to changing circumstances underscores its determination to thrive in the face of challenges, ensuring that gaming enthusiasts continue to enjoy their favorite pastimes.
