Gameskraft to pause Pocket52 poker operations from May 30 for review

Business Standard

14-05-2025

Skill-based online gaming company Gameskraft will pause operations of its online poker platform Pocket52 starting May 30, as the company plans to reassess its long-term strategy in the segment.
The Bengaluru-based company is calling this move a 'strategic pause'. The poker platform's 'add cash' feature will be discontinued on May 22, with the application remaining accessible until July 2025.
'All relevant communications are being sent to the players and will continue to be sent as the process progresses,' the company said in a statement.
Users of the platform will be able to withdraw their remaining funds, and the process will be communicated to all players, according to the company. It added that the operational pause will not affect the company's headcount.
'While Pocket52 saw encouraging engagement, the company has recognised the need for deeper momentum and a more focused strategy to meaningfully scale and deliver a differentiated experience to players. Staying true to this commitment, Gameskraft has announced a strategic pause in the operations of its poker platform, Pocket52, as part of a broader plan to reassess and reimagine its long-term approach to the category,' the company said.
The move comes at a time when online gaming firms are under pressure from the 28 per cent goods and services tax (GST) regime.
The GST Council in 2023 decided to impose a flat 28 per cent tax on the face value of online gaming, casinos and horse racing, and accordingly amended the GST laws (the CGST Act and IGST Act). The new rules came into effect on October 1, 2023.
The amendments specified that GST would be levied on entry-level bets on online gaming platforms, rather than on amounts paid by players in each game from their winnings.
Online gaming companies challenged the amendment, but the Supreme Court in 2023 refused to grant interim relief against GST demand notices issued to them. The court agreed to examine the legality of the government's decision to impose 28 per cent GST retrospectively on the full value of bets placed, rather than on the gross gaming revenue.
Gaming firms have argued that the 28 per cent tax should apply only from October 1, 2023. The government, however, has contended that the October 1 revision merely clarified an existing law, and that the tax demand was not retrospective.