Co-Founders of Passion Gaming Buy Back Rank Group’s Majority Stake
Passion Gaming’s co-founders, Bobby Garg and Priya Kumar, have recently completed the repurchase of Rank Group’s majority stake in the company. While the financial details of the agreement were not disclosed, this acquisition marks an important milestone for Passion Gaming.
Rank Group had acquired a 51% stake in Passion Gaming back in 2017 through their investment arm Stride Investments. However, when Rank acquired Stride in October 2019, they inherited the stake in Passion Gaming. It was only recently announced in Rank’s Q1 results that they would be selling their stake, without disclosing the buyer’s identity.
Passion Gaming, the operator of RummyPassion.com, now has full autonomy to pursue its vision for the online gaming platform. With over 10 million registered players, Passion Gaming has already established a strong presence in the Indian market. Bobby Garg expressed his optimism for the future of skill gaming in India, highlighting the company’s goal to reach 100 million registered users on Rummy Passion within the next three years.
In addition to acquiring Rank’s stake, Passion Gaming has also secured a stay on a hefty tax claim issued by the Indian government. Passion Gaming was one of 71 online skill gaming businesses that received a significant tax bill due to the application of the Goods and Services Tax (GST) to online gambling. The company challenged the order in court and successfully obtained a temporary pause on the proceedings.
Passion Gaming, along with other operators, continues to advocate for fair taxation policies in the industry. They believe that taxing gross revenue rather than turnover would be a more equitable approach. By fostering entrepreneurship in skill gaming and implementing fair taxation policies, Passion Gaming hopes that India can become a global leader in the gaming sector.
While the GST Council did not discuss the tax on gambling in their recent meeting, the issue is expected to be on the agenda for their next gathering in August. Passion Gaming remains committed to player protection and is optimistic about the future of the skill gaming sector in India.
Additional Relevant Facts:
1. Passion Gaming was founded in 2015 and is headquartered in Gurugram, India.
2. The company offers a wide range of online gaming products, including Rummy, Poker, and Fantasy Sports.
3. Passion Gaming has partnered with numerous payment gateways to provide a seamless experience for its users.
4. The company has been actively involved in organizing online gaming tournaments and events to engage its player community.
5. Passion Gaming has a dedicated team of professionals who ensure the safety and fairness of their gaming platforms.
Key Questions and Answers:
1. Who are the co-founders of Passion Gaming?
– The co-founders of Passion Gaming are Bobby Garg and Priya Kumar.
2. What was the stake held by Rank Group in Passion Gaming?
– Rank Group held a 51% stake in Passion Gaming.
3. What is the vision of Passion Gaming for its online gaming platform?
– Passion Gaming aims to reach 100 million registered users on Rummy Passion within the next three years.
4. What tax claim did Passion Gaming challenge in court?
– Passion Gaming challenged a tax claim issued by the Indian government due to the application of GST to online gambling.
Key Challenges and Controversies:
1. The taxation policies surrounding online gambling in India have been a subject of debate and contention for the gaming industry.
2. The temporary stay obtained by Passion Gaming on the tax claim indicates the ongoing legal battles and uncertainties faced by online gaming businesses in India.
3. The lack of clear regulations and guidelines for skill gaming in India poses challenges and uncertainties for companies like Passion Gaming.
Advantages:
1. The repurchase of Rank Group’s stake grants Passion Gaming full autonomy to pursue its vision and strategy without external influence.
2. With a strong presence and millions of registered players, Passion Gaming is well-positioned to further expand its reach in the Indian market.
3. Advocating for fair taxation policies and player protection demonstrates Passion Gaming’s commitment to responsible and ethical practices in the industry.
Disadvantages:
1. The legal and regulatory environment for skill gaming in India remains uncertain, which could impact the growth and stability of companies like Passion Gaming.
2. Competition in the online gaming sector is increasing, and Passion Gaming will need to constantly innovate and adapt to stay ahead in the market.
Suggested Related Links:
1. RummyJunglee: A popular rummy gaming website in India.
2. PokerStars India: A renowned online poker platform in India.
3. Dream11: India’s largest fantasy sports platform.
The source of the article is from the blog coletivometranca.com.br