Skill gaming company Gameskraft is 'temporarily deprioritising' its real-money multi-gaming application Gamezy to focus on developing standalone real-money gaming apps, the company said on September 16.
This move comes at a time when India's real-money gaming platforms are bracing for the recent announcement of a 28 percent GST regime on the sector, which is expected to be implemented from October 1. Gameskraft is also involved in a legal battle with the GST authorities over alleged tax evasion to the tune of Rs 21,000 crore in the Supreme Court.
A Gameskraft spokesperson, however, said these product changes are not related to the recent amendments to the GST laws and termed it as part of a regular review of their strategic priorities. It will not have any "negative impact on their workforce planning and talent deployment", the person said.
As part of this move, Gamezy Rummy and Gamezy Ludo have been launched as standalone apps called RummyPrime and LudoCulture, respectively. It is worth noting that Gameskraft already operates an online rummy platform called Rummyculture and a real-money ludo app Ludo Select.
On its app, Gamezy mentions that its fantasy sports offering Gamezy Fantasy will not be available from September 18. It is not clear whether Gameskraft intends to launch a standalone app for fantasy sports in the future. A Gameskraft spokesperson declined to comment on any such plans. Inc42 previously reported about Gamezy suspending its fantasy sports offering.
Launched in June 2017, Gamezy allowed users to play multiple gaming formats, including fantasy cricket, football and kabaddi and card games like rummy and poker on a single platform and earn cash.
"Over the last couple of years, the Gamezy super app has provided our players with a variety of different games, displayed great innovation, introduced a range of inventive product variants and consistently provided new user experiences that have been greatly appreciated," a Gameskraft spokesperson said.
"However, both prevailing industry trends and our internal insights have underscored the need for deep category-specific experiences to provide a wholesome immersive gameplay to our players," the spokesperson added.
The spokesperson said that the focus on developing and promoting single apps will enable them to "concentrate on their core competencies" and direct "greater resources towards delivering unparalleled user experiences"
The bootstrapped company also counts social rummy app Playship, online poker app Pocket52 among its games and online rummy platform Rummytime as a 'partner' on its website.
On September 13, Moneycontrol reported that the Central Board of Indirect Taxes and Customs (CBIC) is likely to soon issue a tax demand notice with a penalty to Gameskraft.
This was after the Supreme Court stayed the Karnataka High Court's judgment in May 2023, which had quashed the GST department's show-cause notice to the Bengaluru-based skill gaming company. A bench led by Chief Justice of India, D Y Chandrachud, is likely to hear the case for a final hearing later this month.
Industry executives and legal experts recently told Moneycontrol that any unfavourable ruling from the apex court could be the final nail in the coffin for the fast-growing skill-based gaming industry in the country.
Over 40 online gaming companies are likely to soon receive show-cause notices from the Goods and Services Tax (GST) authorities, Moneycontrol reported on September 14.
Real-money gaming segment accounted for 77 percent of India's gaming sector revenues in 2022, which stood at Rs 13,500 crore, according to a recent FICCI-EY report. It is set to grow to Rs 16,700 crore in 2023 and Rs 23,100 crore in 2025, the report added.
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