The fallout from the GST Council’s decision to impose a 28% GST on the online gaming sector has claimed another victim, with Web3 fantasy gaming platform Striker, backed by Mobile Premier League (MPL), reportedly winding up its operations. This move follows a series of challenges, including legal disputes and adverse regulatory measures.
Founded in 2022 by former MPL employees Krishna Mohan Vedula and Nitesh Jain, Striker offered users the ability to collect and trade digital collectibles and cards centered around cricket. However, the recent imposition of a 28% GST on real-money gaming, coupled with other taxes, has taken a toll on the online gaming ecosystem, affecting platforms like Striker.
Despite MPL declining to comment on the specific details, reports suggest that Striker is shutting down operations, raising questions about the fate of existing employees. Co-founder Krishna Mohan Vedula has reportedly left the company.
Striker had been embroiled in a legal case with Rario, a Dream Sports-backed platform, over non-fungible token (NFT)-focused fantasy gaming offerings. The case, filed earlier this year, was related to the use of identifiers and caricatures of cricketers, which Rario claimed it had exclusive licenses for. The Delhi High Court dismissed Rario’s plea for an interim injunction in April, stating that the data used by Striker was publicly available.
The imposition of the 28% GST, combined with a 30% tax on profits from trading virtual digital assets and a 1% TDS, intensified Striker’s challenges. As the crypto and gaming sectors faced a funding winter and a decline in user numbers, Striker found itself on a downward trajectory.
However, Striker is not alone in facing the impact of the GST on online gaming. Several peers, including Fantok and Quizzy, have temporarily shut down, while others like MPL and Hike have resorted to mass layoffs to streamline operations.
In a contrasting development, MPL has reportedly acquired NFT marketplace Good Game Exchange (GGX) for $12.75 million, signaling ongoing consolidation in the crypto sector. As the Indian online gaming ecosystem navigates regulatory challenges and funding uncertainties, the industry’s future remains uncertain.
