Indian gaming firms say new tax will stifle foreign investment

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India's new 28% tax on online gaming companies will stifle foreign investment and put $2.5 billion already invested in the sector at risk, more than 100 gaming firms have said in a letter to India's finance ministry.

The words "India online gaming regulations" are displayed in front of an Indian flag in this Illustration taken September 14, 2022. REUTERS/Dado Ruvic/Illustration/on online gaming companies will stifle foreign investment and put $2.5 billion already invested in the sector at risk, more than 100 gaming firms have said in a letter to India's finance ministry.

Top investors including Tiger Global and Peak XV, previously known as Sequoia Capital India, have invested in Indian gaming companies such as Dream11 and Mobile Premier League. The tax would deter potential investors, both domestic and foreign, from considering the online gaming sector in India as a viable investment destination, the letter said, and added that the current $2.5 billion plus in investments is at stake based on this decision.

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