More about Sports Game Dream11
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Dream11, a well-known gaming unicorn, has bought the fantasy cricket platform Sixer in an unexpected turn of events. Sixer’s creator, Amay Makhija, made the announcement in an email to the company’s loyal customers. This transaction takes place at a time when the Indian betting sector is facing substantial taxation issues. Let’s go into the specifics of this game-changing discovery and implications for the Indian fantasy sports environment.
The Starting Point of Sixer:
Sixer was created by Amay Makhija and was born in 2018 with the specific goal of revolutionizing the fantasy sports industry. Sixer provided a fantasy stock trading game focusing on cricket players, in contrast to other fantasy sports platforms. Users had the option of building a player portfolio and watching stock prices change in response to actual player performance. The portal aimed to offer fantasy sports fans a thrilling and cutting-edge experience.
The Strategic Move of Dream11:
Amay Makhija stated his joy about the purchase in an email to Sixer’s users and stated that the collaboration with Dream11 would take Sixer’s offerings to entirely new heights. Sixer’s cutting-edge innovation in the sports sector was recognized by Dream11, a leader in the fantasy sports industry. The purchase indicates Dream11’s belief that Sixer could be essential in determining the direction of fantasy sports in the future.
However, Dream11 has chosen to keep quiet about the specifics of the deal and has kept quiet. Additionally, the deal to buy took place a few months ago but was only recently made public.
The Indian gambling industry is currently experiencing tax conflict, which is the background against which this acquisition is taking place. The Mumbai Zone of the Directorate General of Goods and Services Tax Intelligence (DGGI), among other gaming firms, received a startling INR 28,000 Crore GST notification from Dream11. The GST Council’s decision to increase the tax rate for real-money gaming to a massive 28% was what sparked this action. A important change that went into effect on October 1 is that this tax is now imposed on gross revenue or the total prize pool.
The Effect on the Gaming Industry:
The new GST rate has shocked the Indian online gambling business. Companies are highly concerned about the increased tax rate and its potential impact on their customer base and income. As a result of the tax increase, industry sources predict a wave of consolidation in the sector. Indeed, more than 20 to 25% of gaming firms have actively explored acquisition options, with some even willing to make significant compromises, such as valuation drops of up to 50%.to 60%.
The effects of the new GST regime are already being felt. Some gaming firms, such as Gameskraft, have stopped offering fantasy games. Others, such as Quizy and Fantok, have either temporarily ceased operations or completely shut down owing to the changing regulatory situation. Notably, well-known players such as MPL (Mobile Premier League), Hike, and Spartan Poker have been forced to lay off employees as a result of the GST Council’s decision.
The acquisition of Sixer by Dream11 represents a momentous event in the world of fantasy sports, reflecting the changing face of the Indian gambling business. While it offers exciting prospects for users, the taxation problems that gaming businesses face highlight the need for legal certainty in this developing sector. Only time will tell how the deal will affect the Indian fantasy sports ecosystem as the sector navigates these challenging the seas.