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The Goods and Services Tax Council decided to levy 28% GST on online gaming, horse racing and casinos on full value in its 50th meet in New Delhi on Tuesday, 11 July 2023.
Nazara Technologies announced that the 28% GST on online gaming will only apply to the skill-based real money gaming segment of their business. This segment contributed 5.2% of the company's overall consolidated revenues for FY23.
The company said that it will proactively take steps to mitigate any potential impact to this segment, and it anticipates minimal impact to their overall revenues. The company remains committed to their growth agenda and will continue to pursue organic and inorganic opportunities across various segments in which they operate.
Nazara Technologies is an Indian gaming and sports media platform that operates in both domestic and global markets. It offers a wide range of services in interactive gaming, eSports, ad-tech, and gamified early learning. The company possesses well-known intellectual properties such as WCC, CarromClash, Kiddopia, Nodwin, Sportskeeda, Halaplay, Openplay, and Datawrkz. Nazara Technologies has been an early player in the Indian eSports and cricket simulation markets. It caters to diverse gaming and entertainment needs with its comprehensive portfolio.
The company's consolidated net profit rose 18.18% to Rs 2.60 crore on 65.22% increase in net sales to Rs 289.30 crore in Q4 March 2023 over Q4 March 2022.
Shares of Nazara Technologies fell 2.73% to Rs 706.50 on Tuesday, 11 July 2023.
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