Gaming startup Quizy has completely shut down its business in August 2023, resulting in the layoff of its entire team. The closure was a direct result of the Indian government's decision to impose a 28% Goods and Services Tax (GST) on the full face value of bets in the online gaming industry. Founder Sachin Yadav stated that this massive tax hike, combined with other tax measures, made the business model unsustainable, forcing the company to exit the real-money gaming sector. This shutdown reflects a broader crisis in the Indian online gaming industry, where increased tax liabilities are pushing many startups and MSMEs out of business, potentially leading to market consolidation.
