A Closer look at the Impact
The vibrant world of gaming takes a hit as Fantok, a promising gaming startup, grapples with the aftermath of a controversial tax decision.
Real money gaming app venture Fantok is the latest casualty of the GST council’s decision to retain a 28% tax on the full face value of online real-money games.
The decision reflects the uncertainty created by the imposition of the 28% GST on the entire realized amount, coupled with high TDS and other issues related to payment gateways.
The company also mentioned that the substantial cost of customer conversion has placed a significant strain on its resources.
Earlier crypto gaming platform, One World Nation and gaming company Quizy had shut down their operations. Other players in the segment- Mobile Premier League, Hike Rush Gaming Universe, and Spartan Poker have already announced significant job cuts to deal with the increased tax burden.
Company Snapshot:
Name of the Company– Fantok
Location- Gurgaon
Founding Year: 2022
Promoters: Ronak Ahuja, Prakhar Saxena and Ashok Vishwakarma
Business: Real Money gaming app that allows users to predict outcomes of real-world events.
Performance: The bootstrapped company claims to have had 15,000 downloads in just three months, and a community of over 130 game creators.
Reason for Shutting Operations- The massive tax burden arising due to the 28% GST has made it difficult for the venture to operate. Fantok plans to review strategic pivots to align with the evolving landscape.
