Striker, MPL-Backed Gaming Platform, Bows Out Amidst Challenges of 28% GST”

Striker’s Demise: Navigating Legal Battles, Regulatory Headwinds, and the 28% GST Quandary

In a recent turn of events, Striker, a Web3 fantasy gaming platform supported by Mobile Premier League (MPL), is shutting down its operations, adding to the growing list of casualties attributed to the 28% GST imposed on the online gaming sector by the GST Council.

The decision to wind up operations comes amid a series of challenges that the gaming platform has faced, including legal disputes and adverse regulatory conditions. Sources suggest that a legal case filed by competitor Rario added to the hurdles faced by Striker, making it increasingly difficult for the platform to sustain its business model.

Founded in 2022 by former MPL employees Krishna Mohan Vedula and Nitesh Jain, Striker had carved a niche for itself by offering users the opportunity to collect and trade digital collectibles and cards centered around cricket. However, despite its unique approach to fantasy gaming, the platform struggled to navigate the complexities of the gaming industry, further compounded by the burdensome 28% GST.

The GST Council’s decision to impose such a high tax rate on the online gaming sector has been met with criticism from various quarters. Industry experts argue that this move not only hampers the growth of gaming startups but also places an additional burden on companies already grappling with competitive challenges.

The report indicates that the shutdown of Striker is imminent, but details regarding the timeline and the fate of the existing employees remain unclear. The departure of co-founder Krishna Mohan Vedula further adds to the uncertainty surrounding the platform’s future.

The Striker case underscores the need for a balanced and supportive regulatory environment for the online gaming sector, fostering innovation and sustainable growth. As the industry grapples with these challenges, it remains to be seen how policymakers will respond to the concerns raised by stakeholders and whether adjustments will be made to the current tax structure to ensure the viability of gaming startups in the country.

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