Ashneer Grover: 'Kohli, Ganguly, Dhoni endorsed online gaming. Why judge it now?'

Ashneer Grover tweeted, 'RIP - Real money gaming industry in India.'

Ashneer Grover on Wednesday continued his criticism of the Centre's decision to impose a 28 percent tax on funds that online gaming companies collect from their customers. He pointed out that even Virat Kohli, MS Dhoni and Sourav Ganguly endorse online gaming with BCCI even accepting fantasy sports platform Dream 11 as its title sponsor, "Why judgement on online gaming now?" he asked.

"You (the government) got billions in from foreign investors as FDI. Celebrated FDI inflow! Now the same investors will apply regulatory risk discount to India and funds will dry up. Not only for online games -- but across sectors. Across startups," Grover, who has his own fantasy gaming platform Crickpe, tweeted. "Tech founders are dispensable -- that’s the only truth. In future, all tech companies will be based in Dubai/Singapore. As an operator Indian regulatory risk makes no sense to put one’s own effort -- forget raising external capital for it !"

Exactly. You got billions in from foreign investors as FDI. Celebrated FDI inflow ! Now the same investors will apply regulatory risk discount to India and funds will dry up. Not only for online games - but across sectors. Across startups.Also why judgement on online gaming… https://t.co/00E1yqOkoC
— Ashneer Grover (@Ashneer_Grover) July 12, 2023

On Monday, hours after the government announcement, Grover said the new tax will murder the fantasy gaming industry and that it's time for entrepreneurs to enter politics or this will keep happening.

"RIP - Real money gaming industry in India," he tweeted. "If the government is thinking people will put in Rs 100 to play on Rs 72 pot entry (28 percent gross GST); and if they win Rs 54 (after platform fees), they will pay 30 percent TDS on that -- for which they will get a free swimming pool in their living room the first monsoon - it's not happening!"

"It was good fun being part of the fantasy gaming industry -- which stands murdered now. $10 billion down the drain in this monsoon," Ashneer Grover said referring to his own company Crickpe which allowed users to create virtual teams of the best in-form real players and earn points depending upon their actual performance.

"Time for startup founders to enter politics and be represented - or this is going to be spate industry after industry," the former Shark Tank India judge wrote.

RIP - Real money gaming industry in India. If the govt is thinking people will put in ₹100 to play on ₹72 pot entry (28% Gross GST); and if they win ₹54 (after platform fees)- they will pay 30% TDS on that - for which they will get free swimming pool in their living room come…

— Ashneer Grover (@Ashneer_Grover) July 11, 2023

The Centre's decision to impose the tax has come as a blow to the $1.5 billion industry that has surged in popularity and attracted foreign investment. Finance Minister Nirmala Sitharaman said the decision was taken after consultation with states, and the intent was not to hurt the industry.

Read more: Ashneer Grover says paying tax is a punishment: 'Taxpayers are doing charity in this country'