Latest news with #Games24x7
&w=3840&q=100)
Business Standard
6 days ago
- Business
- Business Standard
Tamil Nadu gaming rules upheld: Aadhaar KYC, time bans get Madras HC nod
The Madras High Court has upheld the Tamil Nadu government's recent regulations on the real-money gaming (RMG) sector, including mandatory Aadhaar verification and a ban on online gaming between midnight and 6 am. The ruling is a major setback for several online gaming companies that had challenged the rules, Bar and Bench reported. A Bench of Justices SM Subramaniam and J Rajashekar dismissed all the petitions filed by companies such as Games24x7, Junglee Games, Head Digital Works, WinZO, and the Esports Players Welfare Association (EPWA). The companies had argued that the rules were unfair and infringed on users' privacy. The court said the state has the power to regulate online games like Rummy and Poker, especially when played for real money, citing concerns over public health and suicides linked to excessive gaming. It noted that although the Centre's IT rules on online gaming are yet to come into force, Tamil Nadu's regulations 'fill the legal vacuum'. 'The State cannot remain a mute spectator when people are facing mental and physical harm,' the court observed. Addressing the privacy concerns raised by gaming companies, the HC bench referred to the landmark Puttaswamy judgment, which recognised privacy as a fundamental right. However, the court clarified that the right to privacy is not absolute and can be subject to reasonable restrictions in the interest of public welfare. 'Though personal autonomy must be respected, it cannot override the need to protect citizens' health,' the court added. Key features of the Tamil Nadu rules The Tamil Nadu Online Gaming Authority, set up in 2022, had issued detailed regulations on real-money gaming platforms, aimed at curbing excessive play and protecting users. The rules mandate: -Platforms must block access between midnight and 6 am -Players must complete KYC verification using Aadhaar, with an additional OTP sent to the linked mobile number -Minors are prohibited from playing real-money games -Platforms must let players set daily, weekly, and monthly monetary limits -Apps must display caution messages every 30 minutes after one hour of play, and continuously show that 'online gaming is addictive in nature" -Apps must clearly display users' total spending each time they deposit money, in 'reasonably bold letters' These regulations come after the high court had previously set aside a blanket ban on online Rummy and Poker in November 2023, allowing the state to regulate the time spent and age limits for these games, the news report said. India's gaming industry India's gaming sector is booming, with revenues rising to $3.8 billion in FY24 — a 22.6 per cent increase from $3.1 billion the previous year, according to Lumikai, a gaming and interactive media venture fund, Moneycontrol reported. Real-money gaming accounted for $2.4 billion of this revenue. The sector is projected to reach $9.2 billion by FY29, growing at 20 per cent annually.
Time of India
20-05-2025
- Business
- Time of India
ICS 2025: Rethinking integrated communications - from advocacy to influence
We're operating in a world where attention is fleeting, media is fragmented, and trust is hard-won. In this environment, building advocacy isn't just about visibility or media coverage — it's about sustained influence. It calls for credibility built over time, consistency across every touchpoint, and clarity in messaging. More than ever, communication leaders are expected to act as strategic advisers who shape narratives, manage reputational risks, and guide stakeholder perception with data-backed insight. At India Communication Summit 2025 , a session titled 'From Advocacy to Influence: Crafting a High-Impact Communication Strategy ' brought together senior communication leaders to discuss what it takes to drive meaningful influence today. The session featured Abhilasha Gupta, head of global corporate communications and public affairs, Tech Mahindra; Neha Singhvi, vice-president – public affairs, communications & CSR, Games24x7; and Ruchika Batra, vice-president – marketing and communications and head of news & PR for SE Asia, Oceania, and India, Ericsson. The discussion was moderated by Mou Chakravorty, director of marketing communications, Deloitte India. Batra highlighted that communication teams today operate in an uncertain, volatile, and rapidly evolving environment. With multiple stakeholders — from internal teams to governments, media, and customers — it's vital to first understand what truly needs to be communicated. She stressed that having clarity and staying true to the brand proposition forms a strong foundation for any integrated communication strategy. 'So how do I see this whole approach to integrated communication?' Batra asked. 'I'd say the three Cs are my mantra — credibility, consistency, and clarity. Communication must be authentic to the brand, consistent across channels, and clear in its message. If you have these three in place, you've got a good start.' Advocacy was once seen as the final goal — a strong campaign with a clear call to action aimed at attentive stakeholders. But in today's hyper-connected and opinion-driven world, advocacy is just the starting point. While its core values of trust, authenticity, and consistency still matter, the scope of influence has expanded. Influence now goes beyond media and policy decisions, encompassing grassroots movements, digital-first efforts, and peer-led engagement that shape how messages are received and acted upon. Singhvi explained, 'If we were to look at the strategic communication cycle, I think it would start with advocacy, move on to engagement, help build trust, and then lead to influence. Advocacy creates awareness, engagement deepens the conversation, trust builds credibility and reliability, and only then can you truly influence people who believe in your message and stand by what you say.' Data plays a crucial role in modern communication, transforming storytellers into strategic advisers who influence boardroom decisions with credibility and transparency. While brands once made broad claims about sustainability or diversity, today's stakeholders demand clear evidence and measurable results. Proper analysis of data not only reveals gaps between a brand's desired image and public perception but also guides future strategies. This enables more targeted campaigns and helps anticipate challenges, making data an indispensable tool for effective communication. Gupta noted, 'Last but not least, data is incredibly valuable in crisis communication . Crisis management is often overlooked, but it's a major part of what we do. Without analysing available data, handling crises effectively wouldn't be possible. Data helps us identify small signs of trouble early on, allowing us to pre-empt bigger issues before they escalate. That's where data truly comes into play.' Effective communication today demands more than clever messaging. It requires trust, insight, and a strategic approach grounded in data. As the panel revealed, brands that aim to influence must go beyond advocacy — by listening better, responding faster, and consistently reinforcing their values in an unpredictable, always-on world.
Mint
08-05-2025
- Business
- Mint
Mint Explainer: Online gaming's future—and its past taxes—hinge on this Supreme Court battle
India's Supreme Court is hearing a pivotal case that could dramatically reshape how online gaming platforms are taxed. The tax tug-of-war traces back to the introduction of the GST in July 2017. Since then, online gaming platforms had been paying 18% GST on gross gaming revenue (GGR)—that is, the commission or platform fee they charged for hosting games. But in 2023, the government threw a curveball. An amendment reclassified online gaming, along with casinos and horse racing, as 'actionable claims"—a term in Indian law that refers to claims on debts or beneficial interests that can be enforced through legal action. This classification puts such games in the same tax category as lotteries and betting. As a result, from 1 October 2023, a new rule kicked in: a flat 28% GST on the entire entry fee or deposit, not just on the platform's commission. However, the government maintains that this tax treatment should apply retrospectively—i.e., from 2017 onward—arguing that the platforms were always liable to pay GST on the full bet amount, not just their cut. At the heart of the matter: should the government's 2023 decision to treat all real-money online games as gambling for GST purposes be applied retrospectively—triggering years of back taxes and penalties? The stakes are colossal, with tax authorities demanding a staggering ₹1.12 trillion from online gaming platforms and casinos, alleging wrongful classification under GST law. These demands, previously put on hold by the court, are now front and centre of this month's final hearings. Also read: Games24x7 lays off staff as Supreme Court hears 28% GST case This move ignited a firestorm of over 50 legal challenges from gaming companies, vehemently arguing that only their service fee should be taxed. The Karnataka High Court had even quashed a ₹21,000 crore GST demand against Gameskraft, declaring online rummy a game of skill, not chance. Now, this contentious ruling has been clubbed with 27 writ petitions transferred from various High Courts, along with related appeals by platforms like the E-Gaming Federation and Play Games24x7. All eyes are on the Supreme Court's final, potentially game-changing verdict—one that could define the future of India's online gaming industry. Mint explains what's at stake for India's gaming industry. What are gaming companies saying? Online gaming companies have strongly opposed the government's move to apply a 28% GST retrospectively on player deposits, calling it disruptive and financially crippling. While firms have accepted the higher tax rate on the full entry amount—such as deposits or entry fees—they insist it should apply only going forward, from the date the rule was officially enforced. Their main contention lies with the retrospective application of the tax, which seeks to levy 28% GST on past transactions that occurred before the new rule or clarification was issued. 'The retrospective nature of this tax is a body blow to the industry. It not only disrupts ongoing operations but also renders many business models unviable," said an executive with an online gaming company, requesting anonymity. 'We are not contesting regulation or taxation per se — but applying a 28% GST on deposits retrospectively, in some cases going back several years, creates an impossible financial burden. Companies had operated under a different legal understanding for years, often backed by court rulings distinguishing games of skill from gambling. To now be asked to pay massive sums retrospectively — with interest and penalties — destabilises the entire ecosystem," the executive added. According to Ranjeet Mahtani, partner at Dhruva Advisors — a tax advisory firm, companies have adjusted to the new tax regime post-October 2023, even though it has shifted the tax base from GGR to the entire bet amount. 'To maintain viability, gaming companies may increase charges, offer innovative schemes and, ultimately, this (tax) burden will be passed on to the consumer. That's how they're probably managing, to some extent, to balance things out and stay afloat," he said. Also read: Online gaming: One nation, one law may blaze a way out of the maze Smita Singh, partner at S&A Law Office, said the online gaming industry believes only the entry fee paid by players, and not prize money or discounts, should be taxed. She added that applying a higher taxable value from the start of GST is unreasonable and poses a serious threat to the sector's survival. Moreover, industry stakeholders continue to argue that many of these games are skill-based—a classification upheld by the Supreme Court in previous rulings—and therefore should not be subjected to the same tax slab as games of chance. What is the government's stance? Representing the Centre, Additional Solicitor General N. Venkataraman stated that the GST is aimed at the 'speculative outcome' tied to these games, rather than the games themselves—positioning such activities within the scope of gambling. During the May 5 hearing, he added that the distinction between games of skill and games of chance is immaterial when money is at stake. Quoting past Supreme Court rulings, he emphasised that any game played for stakes qualified as gambling. The government maintains that gaming platforms were liable to pay 28% GST on the full entry amount right from the beginning, and not just on the commission or GGR they earned. 'Whether you call it a game of skill, a game of chance, or something in between—if money is involved and users are putting in stakes, it falls under taxable gaming activity. The GST Council has made it clear that the tax applies uniformly," said a Directorate General of GST Intelligence (DGGI) official, requesting anonymity. Why it matters This case has massive implications for the future of India's online gaming industry, which has seen explosive growth. If the Supreme Court rules in favour of the government and maintains the 28% tax rate on the total bet amount, the industry will face a higher operational cost, which could affect smaller platforms more severely. However, the larger companies might be able to absorb the tax burden by passing it on to consumers. Also read: Amid lack of regulation, online gaming in limbo, failing to attract investment If imposed retrospectively, the 28% GST could saddle companies with massive back tax liabilities amounting to tens of thousands of crores. The long-standing legal ambiguity over whether games are based on skill or chance has also resulted in uneven taxation and regulation—something a definitive Supreme Court verdict could help resolve. Among the companies in spotlight, Gameskraft is facing a ₹21,000 crore tax demand, while Paytm's First Games has been served a ₹5,712 crore notice. In total, 71 firms across the industry are staring at retrospective GST demands exceeding ₹1.12 trillion, with penalties potentially pushing that figure beyond ₹2.3 trillion, according to media reports. What's next? Penalties from 2017 onward are expected to be pursued by the DGGI, but the penalties may be softened due to the legal ambiguity around the interpretation of the laws, including amendments, especially if the court rules on the basis of such legal complexities, rather than concludes that these cases involved fraudulent tax evasion, explained Mahtani. In the interim, the stay on DGGI notices protects gaming firms from immediate action. Regardless of the outcome, the ruling will sculpt not just taxation but the broader legitimacy and growth prospects of India's gaming sector. Also read: Don't believe doomsday predictions—PC gaming is alive and kicking
Mint
07-05-2025
- Business
- Mint
Why ‘record' gross GST collections in April don't tell the full story
Every year, when the government releases the goods and services tax (GST) collection figures for April, they are touted as a 'record high' or the 'highest ever'. Technically, they are—but that's not the full story. April GST figures are a seasonal quirk, boosted by the year-end push, and not a barometer of steady consumption growth, as collections normalise the following month. This, along with declining GST buoyancy and slower net revenue growth, indicates a less-than-encouraging trend. A Mint analysis of GST data shows collections spike every April. With the impact of rising prices also reflected in the collections, the April figure usually marks a record high up to that point— ₹ 2.37 trillion was a record high in April 2025, as was ₹ 2.10 trillion in April 2024. The reason for the spike is that the April figures, which reflect transactions that took place in March, are boosted by higher year-end economic activity as well as reconciliation and compliance processes. Also read: Games24x7 lays off staff as Supreme Court hears 28% GST case These recurring April spikes, observed since the early years of the GST regime, are often celebrated as milestones. However, they do not reflect a sustained trend: the April figure for each year is not surpassed by collections in any of the following months. For example, from ₹ 2.1 trillion in April 2024, average collections stood at ₹ 1.82 trillion between May 2024 and March 2025. While April figures grab eyeballs, the full-year data suggests a slower rise in collections relative to India's economic growth. GST collections, in absolute terms at current prices, rose from ₹ 12.2 trillion in FY20 to ₹ 22.1 trillion in FY25. While this was driven by a nearly 34% year-on-year rise in FY22 and a 21% rise in FY23, high wholesale inflation (13% in FY22 and 9.4% in FY23) was partly responsible. Growth rates have declined in the past two years, given the normalisation in wholesale inflation. However, the fact that GST collection growth is now slower than GDP growth is a worrying trend. GST buoyancy (the ratio of tax growth to nominal GDP growth) has been declining since hitting 1.64 in FY22. In fact in FY24 and FY25, GST buoyancy fell below 1, showing that GST collections were not keeping pace with economic growth. In comparison, overall tax collections have been about 1.1 in the past two years, underlining the weakness in the consumption tax. Also read: Chartering the troubled waters of accommodation services under GST While gross GST collections have become a key indicator to track the momentum of consumption and economic activity in the country, the government began providing details of refunds and net revenues only last year, after facing criticism from experts. Net revenue, after adjusting gross tax collections for refunds, is the amount that goes into the government's kitty and can shape its priorities. An analysis of data from recent months, in which detailed information on net revenues is available, paints a gloomier picture. The growth in net GST revenue has been slower than the rise in gross collections more often than not. In April 2025, while gross GST collections rose 12.6% year-on-year—the highest growth rate since November 2023—net revenue growth was significantly lower at 9.1%. Monthly GST figures can be volatile, but full-year data shows a similar trend. According to data released by the government for March, growth in net GST revenue was 8.6% in FY25, lower than the 9.4% increase in gross GST collections for the same period. Also read | Navigating GST registration hurdles: What freelancers and small businesses should know
Mint
06-05-2025
- Business
- Mint
Games24x7 lays off staff as Supreme Court hears 28% GST case
Mumbai: Games24x7 initiated layoffs over the past few days, coinciding with Supreme Court hearings on the 28% Goods and Services Tax (GST) on online gaming that began Monday. The company declined to comment on the layoffs or disclose how many people were affected. However, two industry executives aware of the matter estimated that around 180 employees were let go. As of October 2024, Games24x7 had a workforce of 821 employees, according to Tracxn data. This would imply a reduction of roughly 21.9% of its staff. Read this | Online gaming: One nation, one law may blaze a way out of the maze A third senior executive with direct knowledge of the matter, who requested anonymity, said the layoffs were 'necessary, since the company had over-hired to chase a fast stretch of growth over the past two years." Another person familiar with the matter added that all those laid off were full-time employees. 'The layoff was done to reduce the impact of cost in its fantasy sports division, My11Circle." My11Circle, Games24x7's fantasy gaming platform, competes with Dream11 and is the title sponsor of this year's Indian Premier League (IPL). Both executives cited the IPL sponsorship as a significant cost burden on the company. Games24x7, which also operates RummyCircle, is backed by Tiger Global Management, The Raine Group, Malabar Investment Advisors, and Das & Co. The company has expanded internationally. In FY23, it reported ₹ 1,988 crore in operating revenue—a 70% increase over the previous year—alongside a net loss of ₹ 199 crore, 29% lower than its FY22 loss. The layoffs come at a time of heightened scrutiny for the online gaming industry. On Monday, the government told the Supreme Court it would not distinguish between games of skill and games of chance for taxation under GST, and reiterated that the 28% levy should apply to the total entry amount in online games. This tax policy, first imposed in 2023, has already had a sweeping impact on the sector. That year saw the most significant job losses, as companies reeled from the increased financial burden. Many firms have since instituted hiring freezes, with job postings reportedly dropping by 22% to 60%, particularly for junior to mid-level roles. Some early-stage startups are also struggling to sustain operations, with several seeking consolidation or shutting down entirely. Read this | Amid lack of regulation, online gaming in limbo, failing to attract investment In August 2023, MPL laid off around 350 employees—nearly half its workforce—citing a 350–400% increase in tax liability due to the new rules. The product team was particularly affected. Around the same time, Rush Gaming Universe cut 55 jobs, or 25% of its staff, attributing the decision to the GST regime. The real-money gaming platform Quizy shut down operations altogether. Its founder, Sachin Yadav, cited the revised taxation rates—including the removal of the TDS exemption limit and a flat 30% TDS on all winnings—as key reasons for the closure. Also read | Privacy law: Under-18s to be defined as minors in gaming In November 2023, Mumbai-based game-streaming platform Loco laid off 40 employees, accounting for 36% of its workforce. The company framed this as a strategic restructuring to enhance cost efficiency and support global expansion. Despite the upheaval, India's online gaming user base continues to grow. According to the FICCI-EY Report 2025, the number of online gamers in the country rose to 488 million in 2024, with projections indicating further growth. With inputs from Shouvik Das.
