The gaming industry is an economic activity that includes the development, marketing and monetization of video games. The same video games are funded in the form of different business models in such a way that the initial application can be free if all revenue is generated by purchasing additional content within applications as opposed to the model where the game must first be purchased and then access to all its content. In addition to these two models, there are also mixed forms of business models that apply the characteristics of the models mentioned before. Today, the world of video games is bigger than ever, with the number of employees as well as total revenues growing from year to year. Video games, therefore, are no longer just mere entertainment, but a lucrative business with great economic and financial significance. Realizing the enormous potential of IT, it enters an important sphere of both social and economic life, which has also been recognized by many countries in the world that would like to take their "piece of the cake" through taxation. Croatia is one of the countries that has shown huge potential in this area. In addition to the advantages associated with the operation of this industry in Croatia, there are problems that hinder its development such as lack of agreements to avoid double taxation, primarily with the US, which reduces revenues and competitiveness and additional tax relief, issues additional income taxes, issues of numerous parafiscal levies as well as the necessary education and labor market reforms for this economic segment.