Gaming Stock Witnesses Over 6% Fall After 28% GST On Online Gaming

Shares of leading gaming stock, Nazara Technologies Ltd witnessed a decline of more than 6% in early morning trade till 10:01 am on Wednesday. Current market price of Nazara Technologies share is Rs 662.25 apiece with a fall of 6.26% on BSE. Earlier on Tuesday, Goods and Services Tax (GST) Council opted to impose a 28% tax on the turnover of online gaming companies, horse racing and casinos, said finance minister Nirmala Sitharaman.

The panel, headed by the Union finance minister and comprising of representatives of all states and UTs, decided on tax rate based on recommendation of a group of ministers that looked at taxing casinos, horse racing and online gaming, according to a PTI report.

Meanwhile, the company stated that the Council's decision of imposing 28% GST on online gaming would have minimal impact on its revenues.

Nazara Technologies Stock Performance & Return: The current share price of Nazara Technologies is Rs 662.25 per share on BSE. Its 52-week high price is Rs 789.00 per share and 52-week low price is Rs 481.95 per share, respectively. The company has a market capitalisation of Rs 4486.60 crore.

According to the BSE filing of Nazara Technologies dated July 12, 2023, "With reference to the GST Council's decision to levy a 28% goods and services tax (GST) on online gaming, Nazara Technologies Limited would like to clarify that this tax, once implemented, will apply only to the skill-based real money gaming segment of our business. The contribution of this segment to our overall consolidated revenues for the financial year FY23 was 5.2%."

To the extent required, the Company will proactively take steps to mitigate any potential impact to this segment of our business, and we anticipate minimal impact to our overall revenues, added Nazara Technologies.

In last 1-week, shares of Nazara Technologies declined 7% as speculations were going on to raise taxation on online gaming, horse racing, and casinos. Nazara Technologies stock fell 3% in last 2-weeks. The stock opened at Rs 605.00 apiece on Wednesday, touched day's low of Rs 605.00 per share and day's high so far of Rs 683.55 per share, respectively. In last 3-months, Nazara Technologies shares offered return of 24% and 15% return in last 1-year.