Seeking to attract more Indian players, global gaming firms have been running ‘No GST’ advertisements. These companies are looking to capitalise on the recently announced 28% GST on online gaming in India.

International Platforms Lure in Indians

A number of international platforms are running such ads such as winbuzz.com and gamer777.com. These websites have also partnered up with social media influencers to better reach out to players in India. The advertisements often showcase promises of earning money and not facing 28% GST. Influencers working with such companies are receiving up to 1,000 INR for every social media post that is uploaded on Instagram, Facebook, and X (formerly Twitter).

A social media post that was promoting the 1xbet platform was directly advertising “No 28 per cent GST and no TDS”. Similarly, Winbuzz marketing told players that even if they win Rs 1 crore, Rs 28 lakh will be paid as GST but Winbuzz users stand a chance to get the whole amount without paying any taxes. A senior executive of an Indian online gaming company told ET that these overseas firms are taking advantage of the current situation in the country.

So Why Are Global Gaming Firms Advertising to Indians?

This news follows after the GST Council in India imposed a 28% tax on online gaming, casinos, and horse racing. The decision was met with strong opposition from the industry and its stakeholders. While these foreign gaming firms are ramping up advertisements to attract Indians, local companies are cutting expenditures on marketing in preparation for these changes. Many in the industry believe that this can cripple the Indian online gaming market and give more opportunities to overseas companies as players might look for other options to avoid higher taxes.