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"The implementation of a 28 percent tax rate will bring significant challenges to the gaming industry. The proposal "will bring game of skill at par with wagering contracts, which are in the nature of gambling and betting", said Kishore Kumar, indirect tax lead at Taxmann. In fantasy cricket games on Dream11, users create their teams by paying as little as 8 rupees (10 US cents) with a total prize pool of 1. Industry executives said they may have to pass on the additional costs to their customers by raising the prices of games. United States investment firm Tiger Global has backed Indian gaming start-up Dream11, the lead sponsor of India's national cricket team. The change announced on Tuesday will impose a 28 percent tax on the entire amount collected from players in every game.

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