Gameskraft to shut down Gamezy Fantasy from September 18

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Amidst the ongoing battle with the GST authorities and the increased GST rate of 28% on online real money games, the Bengaluru-based online gaming platform Gameskraft has announced the shutdown of its fantasy offering, Gamezy Fantasy.

“Gamezy Fantasy will not be available from 18th September onwards,” the official announcement on the app reads. This comes as part of the company’s restructuring of its online gaming app.

Gameskraft has directed users to shift to a separate app for its other offerings including rummy and ludo. The Gamezy super app will be temporarily disabled.

As per the statement given to Inc42, a spokesperson for the company revealed that the decisions were made after assessing the ongoing trends and conducting internal research. They found that the best way for immersive gameplay is to provide deep category specific experiences, hence came the decision to temporarily deprioritise the Gamezy super app.

“We are focussing our efforts on the development and promotion of dedicated single apps, like our newly launched RummyPrime, LudoCulture and other initiatives. This focus allows us to concentrate on our core competencies and channel greater resources towards delivering unparalleled user experiences,” the spokesperson further added.

In order to clear the air regarding the changes, Gameskraft has clarified that the decision is not related to the changes in the GST policy and there will not be any impact on its workforce planning and talent deployment.

The decision has come amidst the ongoing Rs 21,000 crore alleged tax evasion case for which the company was handed a show-cause notice by the Directorate General of GST Intelligence (DGGI) in September last year.

This is by far the biggest indirect tax notice issued to an entity. Notably, it was quashed by the Karnataka High Court in May this year, ruling the offerings provided by Gameskraft as skill-based games.

However, the Supreme Court stayed the HC decision after the GST department filed an appeal. The SC’s decision has now also paved the way for the GST authorities to hand out similar show-cause notices other companies.