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Pocket52’s Official Note To Players On GST Changes

With 28% GST on online gaming implemented by the Central government, many poker sites issued changes on their respective platforms as to how they are adapting to the new taxation. Pocket52 is one such online poker room which issued a notification to all its players. But the online poker platform has gone one step ahead and shared a comforting message to its player fraternity. The message by Pocket52 read:

“Dear poker enthusiasts, we are committed to adapt and innovate to ensure the poker community continues to flourish in the face of adversity. We understand that the current changes might be overwhelming. This note will help you navigate the latest changes on the platform and its reasoning. With these changes, we’re minimising impact on the players, ensuring best offerings and experience, and securing a stable long-term game without any hiccups or surprises in the future.”

Pocket52 is aiming to lower the GST impact on its players and boost the player winnings, thus minimizing the negative effects of this recent GST ruling by the government.

Understanding the GST impact on Pocket52

Online poker platforms were earlier subject to 18% GST on the platform fee/commission. However, the recent amendments in GST laws have seen the tax rate change to 28%. This will be applicable on deposits made by the player representing a substantial and impactful shift in the financial dynamics of the industry. This change in the GST rate is applicable across the online money gaming and not only for Pocket52. Let’s take an example.

Particulars	Amount	GST till 30.09.2023	GST on or after 01.10.2023
Add cash	₹110	No GST	24.06 (₹110/128*28) (GST rate is 28% on Add Cash)
Tournament Buy-in value	₹110	Not Subject to GST	Not Subject to GST No GST if you play from winnings without withdrawing
Prize pool money	₹100	NA	NA
Platform margin	₹10	1.52 (₹10/118*18) (GST Rate was 18% on Platform Commission)	NA

It is evident that, despite gross platform margin remaining the same (before or after the GST amendments as explained above), the net platform margins have significantly eroded as GST cost has increased on every ₹100 deposit by ₹ 22.54 (₹24.06 – ₹1.52). This GST cost is being borne by the platform currently. Players will appreciate that this spike of ₹22.54 is more than net platform margin, which stands at ₹8.48 (₹10 – ₹1.52).

At Pocket52, the brand aims to create a sustainable approach in line with bankroll management. Pocket52’s changes are directed towards enhancing bankroll practices in a positive manner.

Introduction of Tournament Deposit Credits (TDC)

Tournament guarantees on Pocket52 have been raised significantly. Starting 1^st October 2023, Pocket52 implemented a new policy. Under this policy, any overlay in a tournament will be distributed to the winners in the form of  tournament deposit credits (TDC). Players can choose to withdraw their winnings or utilise TDC for upcoming tournaments (part of bankroll).

This eliminates the need for additional deposits after withdrawing your winnings. TDC not only assists the online poker platform in mitigating the impact of GST on add cash but also empowers tournament players with the flexibility to use their TDC in any tournament of their choice without any terms and conditions.

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ALSO READ: 28% GST: New Changes Implemented By Online Poker Sites From 1st Oct

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Benefits of TDC:

• Re-deposits attract GST, wherein TDC will allow you to play more tournaments
• A steady bankroll for players
• Absorbs downswings and helps in sustaining your play in the long run
• Ability to withdraw real cash while using TDC for buy-ins

Introduction of Deposit Cash (DC):

For every add cash transaction, Pocket52 is now offering deposit credits (DC). When you deposit ₹100, you will receive an equivalent buy-in of ₹100 despite the increased GST rate, which can be used in both cash games and tournaments. There are no restrictions on how you use this sum, and any winnings generated after applying DC can be withdrawn. DCs are non-withdrawable while enabling players to avail discounted buy-in. There is a monthly limit for DC after adding cash in your Pocket52 account, (contingent on your royalty level). You can view this limit within the Pocket52 app for reference.

Other benefits on Pocket52:

• Royalty Reward Program:
  • Up to 40% DC (earlier rakeback) based on your loyalty
  • Tournament players are now part of the royalty program and can level up by participating in more tournaments (earn up to 40% DC)
• Withdrawal Charges:
  • No hidden fees for withdrawals
  • Limited to one withdrawal per day
• Deposit Charges:
  • No deposit charges on Pocket52
  • Payment gateway fees are absorbed

With every addition of funds, players will receive an official invoice from Pocket52 for the records. This includes the 28% GST paid to the government. This invoice is provided solely for player reference.

When you make a deposit of ₹100 on Pocket52, the TDS calculation for your winnings will be based on the full deposit sum of ₹100, and not on the reduced amount of ₹78.12 (₹100 – GST of ₹21.88). To read  Pocket52’s notification click HERE.

The above clarification by Pocket52 will definitely give the player fraternity a lot of clarity on how the new GST rate will be adapted on the platform. There is no reason to worry, and players can grind as they did before the 28% GST was implemented.

For more news and updates, keep reading Gutshot Magazine or follow us on our social media handles. We are present on Facebook, Instagram, Twitter, and Telegram.

 

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