Taxing the Online Gaming Industry on the Same Level as Gambling will Stifle Growth, According to Winzo

The Indian gaming ecosystem is expected to have 10 unicorns and 5 decacorns in the next five years, but a high tax on the entire online gaming industry at the same level as gambling will stifle growth, according to Winzo, an online gaming company.

The GST Council postponed its decision to levy a 28% tax on casinos, online gaming, horse racing, and lotteries until more stakeholders were consulted.

"We at WinZO believe that India will boast of as many as 10 unicorns and 5 decacorns from the gaming ecosystem in the next five years alone. To paint the entire online gaming industry with the same brush as gambling by placing it in the same tax slab, i.e, 28 percent from the current 18 percent, would have serious implications on the development of this sector,"  Winzo said in a statement.

When a startup's valuation exceeds USD 1 billion, it is referred to as a unicorn, and a company with a valuation greater than USD 10 billion is referred to as a decacorn.

According to Winzo, the country is at the epicentre of the global gaming economy's explosion, contributes nearly 17% of global mobile game downloads, the most of any country, and is poised to become the world's next gaming superpower.