Crisis in MPL – Real Money Gaming Industry over?

Crisis in MPL – Real Money Gaming Industry over?


The Indian government has imposed 28% GST on the gaming industry. The finance ministry says that this will generate a lot of revenue…According to NITI Aayog data online gaming industry has seen 28% growth in 2021 and according to this data set gaming industry has become USD 1.9 billion industry.

MPL


How will this 28% GST affect you?

Suppose if you spend Rs 100 on online gaming or make a deposit, then you will have to pay Rs 28, and if the same amount is Rs 1000, then you will have to pay Rs 280 in advance…

Now with this, the user will also have to pay a platform fee and 30% TDS on net innings.

If the users are affected then the company will also be affected, right? And that’s why there is a lot of chaos in the gaming industry.

On July 11, the Government imposed 28% GST on the total value of gaming transactions. When the industry requested to be taxed not on the total but on the actual earnings of user fees So the government ignored his request… Now its direct effect is happening on gaming companies.

Mobile Premier League (MPL) has announced that they are going to lay off 350 employees.

The company’s co-founder and CEO, Sai Srinivas, in an email, told his employees how the new tax rules will increase the company’s tax burden by 350-400%. Now as a business, any 50% or 100% increase can also be adjusted, but it is difficult to adjust from 350 to 400%.

He said that the company’s variable costs include people, servers, and office space. And for running the business they have to work these expenses and that’s why they have to say goodbye to 350 people…

Now let’s see the details of the real gaming industry –

Indian Gaming Market Gets A Big Boost From The Pandemic – To Grow In 2022 May Become A $2.8 Billion Industry…And now a growth of $5 billion is expected by 2025, growing at a rate of 28-30%. Apart from this, where there were 420 million gamers by 2022, and there is an expectation of 500 million by 2025….
But, after 28% tax, this figure may come down..After all, this taxation has given a big blow to many companies..And now questions are being raised on the survival of this industry itself…

Now you think that if the CEO of MPL were to be 50 to 100% taxed, then we can live, but here there is 350 to 400% taxation…Toh sochiye how much can be earned in online gaming companies during the Pandemic.. Of course, the sponsorship of the world is also done..
And this, unregulated online real gaming industry was no less than some Satta market…And this is the reason that along with the government regulation, rules, patrolling is also being done.

Who are the main players of the Indian gaming industry?

1.    Dream11

2.    Nazara Technologies

3.    Paytm First Games

4.    Games2Win

5.    Moonfrog Labs

6.    99 Games

7.    Octro

8.    JetSynthesys

9.    Hashcube

10. Mech Mocha


What are other leading games that do well online?

1.    Dream 11

2.    Games24x7

3.    Mobile Premier League (MPL)

4.    Gameskraft

5.    Fantasy Akhada

6.    OneTo11

7.    HalaPlay

8.    11Wickets

9.    MyTeam11

10.    MyFab11

11.    Howzat

12.    PlayerzPot

13.    BalleBaazi

14.    Fantasy Khiladi


How will you manage this company now?


Well, just like what MPL is doing, after deducting the server cost and office cost – wow!
Yes, in Kovid Lockdown, these companies were making very easy money, And that’s why from mobile to TV, we used to see online gaming, rummy, and different types of betting games. Due to this not only adults but also children were attracted a lot.

And this situation may not seem that this industry will now grow by 28% as it has done every year from 2020 till now.In a way, the Sanjo Real gaming industry has got locked.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top