Online gaming companies’ shares fall after 28% GST blow

Shares of Indian online gaming firms Nazara Technologies, Onmobile Global, and Delta Corp slid on Wednesday, a day after the government imposed a 28 per cent tax on the funds collected by online gaming companies from customers.

Some industry representatives said the tax would eat into earnings despite Finance Minister Nirmala Sitharaman saying the decision was taken after consultation with states and had no intent to hurt the industry.

Nazara Technologies said on Wednesday that the tax will apply only to the skill-based real money gaming segment of its business, which they say contributed 5.2 per cent to consolidated revenue in fiscal year 2023.