Gaming
28% GST on online gaming will not affect taxation on e-sports, video games
Mumbai: In its last meeting, the GST Council took the decision to levy a 28 per cent tax on the total bet placed at entry level for each gaming session from October 1.
As per media reports, this recently proposed 28 per cent goods and services tax (GST) on online games involving real money will not affect the taxation on e-sports, such as FIFA and League of Legends, or leading titles on PlayStation, Xbox, and Nintendo platforms.
The higher tax rate will be applicable only on pay-to-win games, such as fantasy sports, rummy, and poker, which have the scope of monetary gains.
E-sports and video games which are intended solely for entertainment and do not include betting, gambling, or any money transactions, will continue to be taxed as earlier. As of now, such e-sports and games, which are meant for entertainment, call for 18 per cent GST.
As per the rules, there will be a distinction between games involving monetary gains and games or sports that are meant solely for entertainment.
Media reports suggest that some top players of the video gaming industry had approached the finance ministry and sought clear differentiation to eliminate misconceptions arising from the terminology. Some of these entities brought up the unconnected association between e-sports and gambling, betting, and similar activities.
E-sports has been recognised by the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules and the same should be clarified for taxation purposes, as mentioned in a media report.
In its previous meeting, the GST Council approved upon inserting the definition of online gaming: “An offering of a game on the internet or an electronic network and includes online money gaming.”
“Online money gaming” is likely to mean “games where players pay or deposit money or money’s worth, including virtual digital assets, in the expectation of winning money”.
Additionally, a new provision is also expected to be included for online money gaming offered by a person located outside the taxable territory. The person will be included under the ambit of Integrated GST.
The framework could also include a “specified actionable claim” to encompass betting, casinos, gambling, horse racing, lottery, and online money gaming.
An amendment in this regard to the Central GST Act is expected in the ongoing monsoon session of Parliament. Despite a few days left in the session, the proposed draft Bill seeking the amendment is yet to be listed. The Centre can circulate an Ordinance and also move a supplementary business list in the case of special legislation.
After the Council meeting, Union finance minister Nirmala Sitharaman specified that the provision to enforce higher taxation on online gaming would likely be considered in the ongoing parliamentary session. She also urged states to amend their laws as soon as possible for timely implementation.
Some of the major players of electronic games purely for entertainment purposes include Sony, Microsoft, and Activision Blizzard. Some of the large players in the online money games space include Dream11, WinZO Games, and Nazara Technology.
Gaming
MTG gaming chief Benninghoff joins NODWIN board as esports firm primes for IPO
The Gurugram-based esports firm is pursuing a public listing, has returned to profitability and is growing revenues by 42 per cent
GURUGRAM: NODWIN Gaming is moving fast. The Gurugram-based gaming and esports company has launched a pre-IPO fundraising round, appointed UBS as lead adviser for both the round and a subsequent public listing, and landed a heavyweight board director, all in one go.
The new board member is Arnd Benninghoff, executive vice president of gaming at Stockholm-listed Modern Times Group (MTG), who has overseen the group’s strategic investments and portfolio growth since 2014. He is no stranger to building things: Benninghoff has founded and built fifteen companies, served as chief digital officer at ProSiebenSat.1 Media AG, managing director of SevenVentures, and chief executive of Holtzbrinck eLAB. He began his career as a journalist at Deutsche Presse Agentur and various TV networks, holds a Diplom-Kaufmann in business and administration from the University of Münster, and previously sat on the board of Edgeware AB.
The numbers back the ambition
NODWIN is not pitching a story without substance. The company has returned to EBITDA profitability and posted a 42 per cent year-on-year revenue surge, reaching $58.5m in the first nine months of FY2026. The pre-IPO round will combine a primary issuance to fund global expansion through organic growth and acquisitions, alongside a secondary sale to give existing shareholders some liquidity.
Akshat Rathee, co-founder and managing director of NODWIN Gaming, said Benninghoff understands “the entire lifecycle of the gaming and media ecosystem, from the boots-on-the-ground reality of building startups to the strategic complexity of managing multi-billion dollar global portfolios.”
Benninghoff, for his part, said the company “sits at the intersection of sports, entertainment, and technology, making it one of the most exciting players in the global gaming landscape today.”
A portfolio built for the global south
Founded in 2014 by Rathee and Gautam Virk, NODWIN has quietly assembled one of the more compelling esports portfolios outside the Western hemisphere. Its properties include DreamHack India and Comic Con India, and it recently acquired StarLadder, the Ukraine-based tournament organiser behind premier events in CS:GO and Dota 2. The company also serves as a long-term strategic marketing partner for the Evolution Championship Series (EVO), the world’s most prominent fighting game tournament, helping push it into new geographies.
Its geographic focus spans South Asia, Central Asia, Southeast Asia, the Middle East and Africa. Backers include Nazara Technologies, KRAFTON, Sony Group Corporation, JetSynthesys, and the founders’ investment vehicle Good Game Investments.
What comes next
With UBS running the books, a board freshly reinforced with European media and gaming expertise, and revenue heading in the right direction, NODWIN is laying the groundwork deliberately. The esports industry has burned investors before with big promises and thin margins. NODWIN’s return to profitability, combined with a real portfolio of owned intellectual properties across gaming, music and youth culture, gives it a more credible runway than most. The IPO clock is now ticking.
