Spartan Poker Cuts Workforce Amidst Impact of Government’s 28% GST on Gaming Sector
- ByStartupStory | August 19, 2023
Spartan Poker, an online poker platform, has reportedly laid off 125 employees, accounting for 40 percent of its workforce. This move is in response to the adverse effects of the Indian government’s imposition of a 28 percent Goods and Services Tax (GST) on the real-money gaming sector. This decision follows similar actions taken by other companies that have been impacted by the tax.
Mobile Premier League (MPL), a prominent esports and skill gaming unicorn, recently laid off 350 employees, while Hike, led by Kavin Bharti Mittal, reduced its workforce by 55. Spartan Poker, however, declined to comment on this development to Moneycontrol, a news source.
Established in 2014 by Amin Rozani, Sameer Rattonsey, and Peter Abraham, Spartan Poker offers users the opportunity to participate in online poker tournaments across various formats in both live and online segments.
The GST Council’s decision on August 2 upheld its initial proposal to impose a 28 percent tax on the entire face value of real-money games, without distinguishing between games of skill and chance. Despite suggestions from some states to review this decision, the council opted to maintain the levy. Nonetheless, the council did provide some relief by recommending that GST be applied to the total amount of money deposited by users to play real-money games, rather than on each individual bet. This adjustment is intended to prevent double taxation. Additionally, the council agreed to reevaluate the levy six months after its implementation.
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