Gaming
E-Gaming Federation urges govt to maintain 18% GST for online skill gaming sector
MUMBAI: The GST Council reconstituted a Group of Ministers (GoM) in February 2022 to study the GST rates for casinos, racecourses, and online gaming. The panel’s terms of reference stated that it will examine the valuation of services offered by casinos, racecourses, and online gaming portals, as well as the taxability of some casino transactions, all within the context of existing legal provisions and court orders. In addition, if an alternative is recommended, the GoM will investigate any changes that are required in the legal provisions and the administration of such valuation provision. The group will also assess the impact on other similar services, such as the lottery.
Earlier this month, Meghalaya Chief Minister Conrad Sangma, Convener – GoM held a meeting with other members and officials to discuss various aspects including the possible GST rates for online gaming, valuation modalities for levying the tax, and other technicalities regarding such activities.
Currently, a tax rate of 18 percent is levied on the commission (Gross Gaming Revenue or GGR) collected by the online gaming platforms for each game that does not involve betting or gambling. This rate is in line with global best practices since online gaming industry tax structures in countries such as the USA, UK, Germany, and Australia, range between 15 percent to 20 percent. In recent years, the online gaming industry has experienced significant growth. The sector generated Rs 115 billion in revenue in 2020, and it is predicted to expand at a CAGR of 38 percent to Rs 384 billion by 2025.
The contribution to the government exchequer by this industry was 15 to 20 billion in 2020, and the same is expected to reach 35 to 50 billion by 2025.
If the current taxation regime is revised and charged on stakes rather than gross gaming revenue (GGR), it will prove to be disastrous to the burgeoning potential of the Indian online gaming industry. The hike will raise the tax by over 800 percent – 900 percent and encourage illicit market operations, which will expose players to unscrupulous operators (predominantly offshore), substantially reduce tax revenues for the government, and all but wipe out a legitimate sunrise sector with the potential to generate $25 billion in annual revenues and hundreds of thousands of jobs by 2030.
E-Gaming Federation (EGF), an organisation representing top online skill gaming operators in India urges the government to consider Gross Gaming Revenues (GGR) for levying GST and keeping the service at an 18 percent slab.
EGF CEO Sameer Barde said, “A higher tax burden will make the industry unviable. The gaming platform operators will be unable to continue operations at any meaningful level. Growth, innovation, employment opportunities, government revenues and most important responsible and safe gaming will be impacted in a big way. We urge the GoM to consider the industry’s unique needs and recommend the continuance of the current practice of considering GST to be paid on GGR, with the rate remaining at 18 percent. As online gaming is different from gambling and the Supreme Court and several High Courts have reaffirmed the status of skill-based games as legitimate business activity, rational tax treatment of online skill gaming will help in creating mutually benefitting situations for all the stakeholders.”
EGF added that PM Modi endorsed India’s gaming industry as a potential world leader, emphasising on the industry’s socioeconomic and cultural importance in today’s globalised and digitised economy. The sector received further impetus after Finance Minister Nirmala Sitharaman announced the setting up of the Animation, Visual Arts, Gaming and Comics (AVGC) Task Force, in her budget speech this year. “We are witnessing the start of a new era in India’s gaming sector. The fact that the government is supporting the industry is really encouraging. The sector’s true growth story, however, will be determined by progressive and favourable policies that establish best practices and encourage responsible gaming.”
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.
