The homegrown online gaming sector is grappling with the repercussions of the 28% Goods and Services Tax (GST), as yet another online gaming platform, Spartan Poker, reportedly becomes the latest startup to resort to layoffs.
Layoffs Hit Spartan Poker
Sources have informed Moneycontrol that Spartan Poker, in response to the new tax regime, has laid off 125 employees, accounting for 40% of its total workforce. The specific departments affected by the company’s decision to downsize are currently unclear.
Spartan Poker- Trend of Layoffs Continues in Online Gaming
Spartan Poker becomes the third significant online gaming startup to implement employee layoffs, following similar actions by Hike and MPL. The gaming industry’s workforce dynamics are shifting due to the challenges posed by the GST.
Online Gaming Ecosystem Reacts to GST Imposition
The gaming ecosystem voiced its concerns when the GST Council introduced a 28% GST on entry-level payments for online games. This move prompted Finance Minister Nirmala Sitharaman to hint at potential amendments to the GST Act during the Monsoon Session of Parliament.
Uncertain Landscape for Online Gaming Startups
With more startups considering layoffs due to the GST, the online gaming ecosystem faces uncertainty. The industry is watching closely to see how these companies navigate the challenges brought by the 28% tax, as the government’s plans continue to unfold. The future of the online gaming sector hangs in the balance as it confronts this new curveball in the form of a 28% GST.
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