homemarket Newsstocks NewsNazara Tech rallies 5% after Google allows fantasy sports apps on Play Store for a year
Nazara Tech rallies 5% after Google allows fantasy sports apps on Play Store for a year
Speaking to CNBC-TV18 after the announcement that fantasy sports and gaming apps will be allowed on Google Play Store, Nitish Mittersain, joint MD of Nazara Technologies said that skill-based gaming contributes 80 percent of the total gaming market in India and thus has major growth potential.
Gaming and sports media platform, Nazara Technologies rallied 5 percent in trade on Monday reacting to Google India allowing fantasy sports and rummy apps on its Play Store as a one-year programme.
In a policy update, Google said that the India pilot programme would run from September 28, 2022, to September 28, 2023. App developers (existing and new) will have to submit an application form to Google for this.
In a report on the sector, Deloitte India has estimated that the fantasy sports market will grow more than four-fold by the end of the financial year 2025.
Speaking to CNBC-TV18 after the announcement, Nitish Mittersain, joint MD of Nazara Technologies said that skill-based gaming contributes 80 percent of the total gaming market in India and thus has major growth potential.
“It contributes 70-80 percent of the overall gaming revenues that are being generated in the country. A lot of these revenues come from some local players, but a lot of it also goes to a lot of international players who are operating in our country,” he said.
Over the years there has been a lot of regulatory confusion on how these businesses have to be taxed. Now. with talks of bringing the sector under GST (goods and services tax), there is clarity emerging.
“The GST Council has been looking at taxation on online gaming very actively. And we are also very hopeful that in the next month or two, more clarity will emerge on the GST as well,” Mittersain said.
According to sources, The Group of Ministers (GoM) formed to decide GST rates on online gaming, casinos, and horse racing is open to the view of levying different rates and considering different valuation mechanisms for all three if required.
However, the GST Council nominated GoM, headed by Meghalaya Chief Minister Conrad Sangma, has not finalized any view as yet on the rates for the three games which are different in nature.
For the entire interview, watch the accompanying video
(Edited by : Abhishek Jha)
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