New tax divides India's booming computer games sector

PO1 William "Chip" Nagel
..."Yet while all had been looking good, shockwaves were sent through the industry back in July when the government announced that it was inducing a new 28% tax on online gaming. Such was the vagueness of the wording that the fear was that it could affect all Indian gaming firms.

However, New Delhi subsequently clarified that the tax, which starts next month, will only apply to so-called "iGaming". These are gambling sites, such as online casinos; or "real money" games in which the players have to pay to enter, and then compete to win prize money, such as some fantasy cricket competitions.

The tax does not apply to esports competitions, which are classified as a genuine sport. And while such competitions offer prize funds, you do not have to pay to take part. The prize money instead is covered by sponsorship and people paying to watch the games.

Nor does the new tax affect casual gaming, such as games in which the user may have to pay to participate, or then make in-app purchases to be able to continue. This is because these games do not offer any prize funds."...

Novel approach though I can't say I agree with it (especially if I was one that would be affected by it ☺).

I was shaking my head until I read the article. It would only apply to "iGaming" - those events where you pay an entrance fee and then compete against others playing the game for monetary prizes.