Last month the GST Council announced that it would levy a 28% GST on online gaming. Post that, there has been a lot of unrest in the online gaming community since the tax would mean that brands have to pay more than their revenues as taxes. And this decision has recorded its first casualty as online real money gaming platform Quizy has announced it is closing down.
Co-founder of Quizy, Sachin Yadav, shared a LinkedIn post a couple of days ago sharing that the online gaming firm is exiting the industry due to the recent changes in tax regulations that will make the business unsustainable. “How Are We Forced to Bid Farewell to Our Beloved Real Money Gaming Industry? 💔🎮Over the past 3 crucial years of our life, I and Amit Kumar poured our hearts and souls into building Quizy that captured the excitement & pretty good scale of over a million users. We were driven by a shared vision of creating an innovative gaming platform and turning it into a profitable venture. However, pained to say this, recent developments in the tax landscape & regulatory environment have left us with no choice but to bid farewell to our beloved gaming venture,” the post read. (sic)
Quizy was founded in 2021 by Yadav and Amit Kumar. It was an information gamifying platform that involved quizzes on day-to-day news developments. They had received funding from several sources like 100X VC, We Founder Circle, Anchorage Capital Partners, FAAD Network and Capital A & Dholakia Ventures. This they had a total of $305,000 as per VC Circle.
In his post, Yadav also requested the lawmakers and online gaming firms to work in unison, saying, “to strike a balance that supports innovation, economic growth, and responsible gaming.” He also explained how the online gaming industry has a huge potential for innovation and job creation.
The online gaming sector has already urged the government and the GST Council to reconsider the criteria of the tax levy. The GST Council is meeting again today and is expected to finalise how the tax will be levied.
Amarylisa Gonsalves is a Content Writer at Gutshot Magazine. Advancing from a marketing background, she found her calling in writing. She takes delight in exploring genres and is a curious learner. Patient and ambivert, she believes in letting her work speak for itself. Apart from content writing, she finds solace in writing poetry by expressing herself through words. Additionally, she adores indulging in anything that satisfies her creative self, like drawing and DIY crafts.
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