Amidst the tussle the ongoing tax troubles and the higher GST rate of 28% on online real money games, Bengaluru-based gaming firm Gameskraft is shutting down operations of Gamezy Fantasy.
“Gamezy Fantasy will not be available from September 18th onwards,” the official statement on the app says. This comes as part of the company’s focus on developing and promoting standalone apps.
“Given the vision with regards to our portfolio, we have made a strategic decision to reassess and temporarily deprioritize our Gamezy super app. We are focusing our efforts on the development and promotion of dedicated single apps, like our newly launched RummyPrime, LudoCulture, and other initiatives,” the company’s spokesperson said in a statement to YourStory.
The spokesperson also added that the decision won’t impact the company’s ongoing workforce.
Recently, Gameskraft has been under the scanner of the tax authorities as it owns a whopping INR 21,000 crore in GST payments and is likely to receive a demand notice ahead, as per media reports.
Speaking of the decision regarding the shutdown of Gamezy, the gaming firm said that their decision to shut down Gamezy is not related to the recent GST regulations, which will begin from October 1.
The 28% GST rate has been severely criticised by both gamers as well operators. Several gaming companies have already spoken against the move, saying it may kill the industry and affect jobs.
Gaming companies have already begun to face the heat of the new GST regulations. In August, real money gaming firm Mobile Premier League (MPL) laid off 350 employees, 50% of its workforce.
Similar decision was taken by online poker platform Spartan Poker laying off over its 40% workforce.
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