Real money gaming startup Fantok has announced a temporary suspension of its operations, becoming another casualty to the GST Council’s decision to levy a 28% GST on online gaming.
The company said in a statement that the decision was taken due to the “unsustainable” impact of the GST hike. Fantok is the latest in a string of real money gaming companies that have been forced to shut down or scale back operations in recent months.
In its statement, Fantok said that it is “committed to the growth of the real money gaming industry in India” and is “working with the government to find a solution that is fair and sustainable for all stakeholders.”
The Gurugram-based company, founded by Ronak Ahuja, Prakhar Saxena and Ashok Vishwakarma in 2022, claims to have amassed over 15,000 downloads on its real money gaming app that focuses on prediction markets. The company also claims to have engaged a community of more than 130 creators who contributed games to the platform with a trade volume of over $120,000.
Our decision to temporarily suspend operations underscores our commitment to operating within a legal and compliant framework while exploring new avenues for growth. This pause will enable us to navigate these challenges thoughtfully and consider strategic pivots that align with the evolving landscape, Ahuja said in a statement.