Indian real-money gaming startup Gameskraft reported a 10.8% decline in net profit for FY24, totaling 946.9 crore rupees (US$109.45 million).

The decline is attributed to rising expenses and changes in taxation policies.

The company’s revenue from operations increased to 3,474.9 crore rupees (US$401.65 million), while total revenue grew by 28% to 3,521.4 crore rupees (US$407.02 million).

Gameskraft’s expenses surged by 72%, reaching 2,232.5 crore rupees (US$258.04 million), with a notable increase in advertising costs, up 113% to 1,314.82 crore rupees (US$151.97 million).

The startup operates multiple gaming platforms, including RummyCulture, RummyPrime, and Playship, generating revenue from commissions on user buy-ins.

Founded in 2017, Gameskraft faces challenges from a new 28% Goods and Services Tax (GST) on the full value of bets for online gaming, up from the previous 18%.