Gameskraft Poker Pause: What It Means for Online Gaming GST Compliance
The Gameskraft poker pause is making headlines. Starting May 30, 2025, Gameskraft has announced a temporary halt of its real-money poker platform, Pocket52, citing an internal strategic review. This move comes amid ongoing legal and tax scrutiny of the online gaming industry—especially after the GST Council’s 2023 amendments and the Supreme Court’s upcoming judgment in the Gameskraft retrospective tax case.
Let’s break down what this pause means for players, platform owners, and tax professionals.
Why is Pocket52 being paused?
As per official statements and media reports, the pause is temporary and meant for a strategic overhaul.
- GST litigation risks: Ongoing Rs. 21,000 crore GST demand on Gameskraft under Rule 31A of CGST Rules, 2017.
- Regulatory uncertainty: Awaiting final verdict from the Supreme Court on whether poker is a game of skill or chance.
- Operational restructuring: Internal reassessment of compliance protocols and player risk frameworks.
Key GST issues in online gaming
The Gameskraft poker pause reflects deeper tax challenges in the online gaming space:
| Issue | Before GST Amendments (2023) | After GST Amendments (2023) |
|---|---|---|
| Tax Rate | 18% on platform fees (game of skill) | 28% on full face value (even for skill games) |
| Valuation | Only platform commission taxed | Entire bet amount taxed |
| Ambiguity | Skill vs. chance debated | Uniform 28% regardless of game type |
| Litigation | Widespread | Consolidating under Supreme Court review |
Legal Reference: GST Council decisions dated 11 July 2023 and Notification No. 50/2023–CT dated 24 August 2023.
What players need to know
- Balance withdrawal: Users should withdraw any remaining balance from Pocket52 before May 30, 2025.
- Game history: Download your game logs and transaction history for records or disputes.
- No legal penalty: The pause does not affect players’ tax liabilities unless winnings exceed ₹10,000 under Section 194BA (TDS on online winnings).
Expert View
CA Shyam L., Tax Strategist
The pause is likely a preventive measure to avoid further tax liability before the final SC verdict.”
What’s next for Gameskraft?
- Awaiting Supreme Court judgment on retrospective GST.
- Possible restructuring of platform rules and player policies.
- May re-launch Pocket52 with revised compliance features.
If the SC rules in favour of the taxpayer (as some earlier High Courts hinted), this could redefine GST’s application on online skill games.
Conclusion: Is this the start of a wider trend?
With Dream11 and other platforms also facing scrutiny, the Gameskraft poker pause may signal a growing need for robust compliance in India’s online gaming sector. For now, both tax experts and businesses are watching the Gameskraft GST case closely.
FAQs
1. Is Pocket52 shutting down permanently?
No, Gameskraft has only paused operations temporarily for a strategic review.
2. Will users lose their money?
No, users are being advised to withdraw funds before May 30.
3. Why is GST being charged on full value now?
As per Notification No. 50/2023–CT, GST is now levied at 28% on the full face value of bets in online games, regardless of whether they are skill-based or not.
Summary
Gameskraft will pause Pocket52 poker operations from May 30, 2025, amid legal and GST uncertainties. This move reflects deeper tax challenges after the GST Council’s 2023 decision to levy 28% GST on full bet value. Players are advised to withdraw balances before the pause.