Gameskraft Halts Pay-to-Play Rummy, Won't Challenge Online Gaming Bill
Gameskraft, a Bengaluru-based gaming company, has announced compliance with India's new Promotion and Regulation of Online Gaming Bill, which bans online money games. The company has paused all pay-to-play rummy offerings and will not pursue legal action against the bill. Gameskraft is engaging with auditors, banking partners, and legal advisors to manage the transition. This decision aligns with similar actions by other industry players like Dream11. The online gaming industry in India is adapting to the new regulations, with companies exploring alternative business models. Gameskraft is also addressing a Rs 21,000-crore show-cause notice from the Directorate General of GST Intelligence.
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Bengaluru-based gaming company Gameskraft has announced it will not pursue legal action against the Promotion and Regulation of Online Gaming Bill, which bans all online money games in India. The company has taken immediate steps to comply with the new legislation, including pausing all its pay-to-play rummy offerings.
Respecting the Legislative Process
In a statement, Gameskraft expressed its respect for the legislative process and reaffirmed its commitment to operating within legal frameworks. This decision aligns with a similar stance taken by Dream11, another major player in the online gaming industry, which also opted not to challenge the Bill legally.
Internal Restructuring and Business Continuity
Gameskraft has initiated internal discussions to chart its future course in light of the new regulations. The company is actively coordinating with various stakeholders to ensure business continuity during this transition period:
- Engaging with auditors for financial assessments
- Consulting with banking partners to manage financial implications
- Seeking guidance from legal advisors on compliance matters
Industry-wide Impact and Adaptations
The online gaming industry in India is witnessing significant shifts in response to the new legislation:
- Dream11 has piloted a wealth management app, diversifying its business model
- Gaming platform Winzo has launched a micro-entertainment platform
These moves indicate a trend of online gaming companies exploring alternative revenue streams and business models in the wake of the regulatory changes.
Ongoing Regulatory Challenges
Apart from adapting to the new gaming bill, Gameskraft is also grappling with other regulatory issues. The company is currently addressing a Rs 21,000-crore show-cause notice from the Directorate General of GST Intelligence, highlighting the complex regulatory environment facing the online gaming industry in India.
The company's decision to comply with the new regulations without legal challenge, while simultaneously dealing with existing regulatory issues, underscores the challenging landscape for online gaming companies in India. As the industry continues to evolve, companies like Gameskraft will need to navigate these regulatory hurdles while exploring new avenues for growth and sustainability.
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