In India, the implementation of a 28% Goods and Services Tax （GST） on fantasy sports platforms has significantly impacted the local gaming industry. Fantasy sports, which involve users creating virtual teams based on real-life players and competing for points, have gained immense popularity. This tax rate applies to the contest entry amount, making it essential for operators to comply with new regulations. The change aims to standardize tax treatment across similar online skill-based gaming activities, ensuring fair revenue collection for the government while addressing concerns over gambling-like elements.
Local fantasy sports products, such as Dream11 and MyTeam11, have adapted by adjusting their pricing structures and user interfaces to accommodate the higher tax burden. These platforms emphasize skill-based participation to distinguish themselves from pure chance games, which helps in maintaining user engagement. The 28% GST has led to increased costs for players, potentially affecting participation rates, but the industry continues to grow due to strong marketing and partnerships with sports leagues. Overall, this tax policy reflects India\“s evolving approach to regulating digital entertainment and monetizing the booming fantasy sports market. |
