by THO
Bengaluru-based online gaming company Gameskraft Technologies Private Limited has bought a land parcel spread over an area of 8.61 acres in Gurugram, Haryana, for ₹90 crore, documents accessed by Propstack showed.
The documents showed the property to be an agricultural land.
The sale deal was registered on Mar 11, 2024. The company paid a stamp duty of ₹6.3 crore for the deal, the documents showed.
The company confirmed the deal. “Yes, we have bought land for developing an educational facility as part of our broader social initiatives,” the company said.
The company operates several gaming brands, including an online rummy platform Rummyculture, social rummy app Playship, and online poker app Pocket52.
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In 2022, a GST intelligence unit has issued a showcause notice against the company alleging that it had failed to pay ₹21000 crore in GST following which the online gaming firm approached the Karnataka High Court and challenged the showcause notice which was eventually quashed. The revenue intelligence unit of the GST department then appealed against the order in the Supreme Court.
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In 2021, the company had bought an office space in Bengaluru for ₹129.99 crore.
The online gaming industry in India
According to a report by EY titled ‘New Frontiers Navigating the Evolving Landscape for Online Gaming in India’, the country boasts a substantial gaming community, comprising 42.5 crore gamers, the second largest globally after China. The sector holds the potential to boost Foreign Direct Investment (FDI) inflows, employment, and investments in various sectors. It will also catalyze ancillary sectors like fintech, cloud services, data analytics, and cybersecurity.
From FY20 to FY23, the online gaming segment in India experienced a notable CAGR of 28%. Industry estimates suggest it will reach ₹33,243 crore in FY28E, showing a 15% CAGR. It directly and indirectly employs around one lakh individuals, with the prospect of expanding to 250,000 job opportunities by 2025, the EY report said.
In August 2023, during the 51st GST council meeting, amendments were made to the GST laws to specify that ‘actionable claims’ offered by RMG platforms would be taxed at 28% on full-face value of deposits. On the backdrop of GST amendments online gaming platforms are reinventing their operating models and re-evaluating business strategies for sustained operations and growth, the EY report said.
A report by KPMG had said earlier that COVID-19 has been the proverbial tipping point for the consumption of gaming in India.
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The KPMG report had said that India remains a mobile first gaming market, with mobile phones/smartphones the most preferred device amongst online gamers. This is owing to factors around affordability as compared to console, and the flexibility they offer in terms of the ‘anytime, anywhere’ usage.
