After MPL & Hike, Spartan Poker Follows Suit, Lays Off 40% Of Workforce

The homegrown online gaming sector continues to reel under the impact of 28% GST as another online gaming platform, Spartan Poker, has reportedly become the latest startup to undergo layoffs. 

Sources told Moneycontrol that the startup has fired 125 employees or 40% of its total workforce, as it grapples with the new tax regime. It was not immediately clear which departments were impacted by the company’s retrenchment move. 

With this, Spartan Poker has become the third major online gaming startup to have laid off employees after Hike and MPL. 

Inc42 has reached out to a company representative for comments. This story will be updated accordingly.

Founded by Amin Rozani, Sameer Rattonsey, and Peter Abraham in 2014, Spartan Poker is an online poker platform that allows gaming enthusiasts to play poker tournaments online across various formats. 

The new development comes days after Bharti Enterprises scion Kavin Mittal-led web3 gaming startup Hike slashed its workforce by 25%, impacting as many as 100 employees. The company attributed the layoffs to the government’s move to impose a 28% GST, due to which it was staring at a 400% increase in tax burden.

Earlier this month, gaming unicorn MPL began culling its workforce to conserve capital. On August 8, Inc42 reported that the company had decided to let go of 350 employees.  

The entire gaming ecosystem came out all guns blazing after the GST Council announced its decision to impose 28% GST on the amount being paid at the entry level for online games. Solidifying the move, Finance Minister Nirmala Sitharaman, just days later, hinted that the government was looking at amending the GST Act during the Parliament’s Monsoon Session to implement the new tax. 

A majority of online gaming platforms had beforehand warned that the 28% GST regime could lead to mass layoffs and increased tax burden. In their letters written to the government, many even termed the levy unconstitutional and called for its revocation. 

With another startup joining the growing list of companies undertaking layoffs, it remains to be seen who else joins the layoff bandwagon as the government moves ahead with its plans. With much at stake, all eyes are now on the online gaming ecosystem and how it handles the new curveball which is a 28% GST.