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Indian online gaming companies' shares fall on 28% tax blow

  • 📰 Reuters
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  • News: 6%
  • Publisher: 97%

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Shares of Indian online gaming firms Nazara Technologies , Onmobile Global , and Delta Corp slid on Wednesday, a day after the government imposed a 28% 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.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% to consolidated revenue in fiscal year 2023.

Nazara and Delta have risen 21.6% and 15.9%, respectively, so far this year as of Tuesday's close, while Onmobile has fallen 11.9%.

 

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