Led by Indian gamblers Raghav Bansal and Raman Gujral, a group of professional poker players has threatened to boycott Adda52 tournaments to protest the card games site’s unfair Tax Deduction at Source (TDS) policies
Addressing The Players Group (TPG), which boasts a reach of 3,700 members on Facebook, Bansal highlighted the fact that all poker websites deducted TDS only from net winnings on tournaments, excluding Adda52 which rakes in a substantial cut from the prize pool. Adda52.com is India’s largest online poker platform.
Current Policy Allows Outright Cut On Prize Pool
The pro noted that most major poker sites in India have begun rolling out improved tax policies that bring greater ease in the processing of levies on net winnings while still keeping more money in the poker system. Adda52, on the other hand has not budged, introducing no updates to its multi-table tournament tax policy, effectively forcing players to shell out more than they are supposed to and essentially guaranteeing that little to none of its gambler patrons will be able to turn a profit in the long term.
Bansal further highlighted that, with the current policy, Adda52 gets an outright 32 percent cut from the prize pool in every tournament. Lambasting the unscrupulous setup as “beyond ridiculous,” Bansal has called on his fellow players to boycott tourneys set to be hosted by Adda52 as a sign of protect.
With a widespread boycott, market analysts predict that Adda52 will fall short of fulfilling its guarantees for its upcoming tournaments.
Adda52 Open To Player Discussions
Gujral reveals that the Adda52 management has reached out to their group with an invitation to a closed-door dialogue on the issue. However, no player representatives could commit to going given to the short notice. Gujral stated that his group intends to hold and continue the boycott until Adda52 and its management are able to address the TDS woes and amend the unfair policies.
Section 194B of the Income Tax Act mandates that TDS as per rates in force should be deducted on card game winnings that exceed Rupees 10,000. However, the provision fails to stipulate how total winnings should be calculated, thus different online poker platforms have adopted varied approaches in its deduction of withholding taxes.
In revamping their TDS policies and luring more players, a handful of card game sites have begun offering promotions wherein they shoulder in whole the TDS and shell out to pay for the due taxes from their own funds, without deducting from players’ earnings.