Skill-gaming company Gameskraft is pausing operations of its online poker platform, Pocket52, on May 30, the latest casualty in India’s real-money gaming industry grappling with the impact of the 28 percent goods and services tax (GST) regime and a slew to legal challenges.
The move was part of a "broader plan to reassess and reimagine its long-term approach" to the category, Gameskraft said. While Pocket52 saw encouraging engagement, it realised the need for a "deeper momentum and a more focused strategy to meaningfully scale and deliver a differentiated experience to players", it said.
“We remain committed to the Poker ecosystem in India. This pause allows us to reimagine what a best-in-class Poker platform should look like, one that delivers excellence, innovation, and sustainable impact,” the company said in a statement. This move will, however, not lead to staff reduction, it added.
The Bengaluru-based firm will stop accepting player deposits through the 'Add Cash' feature from May 22 and the gameplay will end May 30. The app will remain accessible until July.
Customers' funds will be accessible through standard withdrawal processes that will be communicated to all players, it said.
The move also comes amid growing consolidation in the online poker segment. Delta Corp sold its skill gaming unit Deltatech Gaming to Head Digital Works, which operates online rummy and poker platforms under the A23 brand, for around Rs 491 crore in a cash-and-stock deal in February.
Diversified gaming and sports media firm Nazara Technologies recently acquired a 47.7 percent stake in online poker platform PokerBaazi, one of the country's biggest online poker platforms.
Other prominent players who offer online poker in the country include Games24x7's PokerCircle, Mobile Premier League (MPL), and Spartan Poker, which was acquired by metaverse and gaming tech company OneVerse in February 2024.
Gameskraft operates a range of skill-based gaming brands, including the online rummy platform Rummyculture and the social rummy app Playship.
The company had launched rummy and ludo offerings from its super app Gamezy as standalone apps, RummyPrime and Ludo Culture, while shutting down its fantasy sports offering in September 2023. Ludo Culture was subsequently shut down in September 2024.
That said, Gameskraft along with a slew of other real-money gaming companies are also facing retrospective tax demands from Indian authorities, which many industry stakeholders fear could spell the death knell for the rapidly-growing sector.
In January, the Supreme Court stayed GST show cause notices, worth more than Rs 1.5 lakh crore, from over 50 real-money gaming companies and industry associations. The apex court is currently hearing the case, and its decision is expected to shape the future of the sector.
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