CHENNAI: Marking yet another major fallout of the government’s new gaming policy, Bengaluru-based real-money gaming firm Gameskraft has laid off about 120 employees across various teams as part of a company-wide restructuring. The move comes in the wake of the Indian government’s blanket ban on real-money gaming, which has severely hit the company’s business.
The layoffs affect staff across operations, technology, marketing, finance, and support. Gameskraft said on Thursday that it will provide severance pay in line with employment contracts, along with leave encashment. Health insurance benefits will remain active until March 2026 or until affected employees secure new jobs. The company has also allowed employees to convert the corporate health policy into individual cover.
Founder Prithvi Singh described the decision as “painful but unavoidable,” noting that the restructuring is driven by regulatory changes rather than employee performance. Gameskraft has already shut down its rummy platform Rummyculture and paused operations of its poker app Pocket52 earlier this year.
The company is also grappling with a separate challenge. Its former CFO, Ramesh Prabhu, has been accused of diverting nearly ₹270 crore into unauthorized futures and options trades. An FIR has been filed in Bengaluru, adding to the financial and reputational strain on the company.
Wider industry impact and outlook
Gameskraft is not alone in facing the fallout of the ban. Industry estimates suggest that nearly 2,000 employees have lost jobs across leading real-money gaming firms in recent weeks. Companies such as MPL and smaller startups have either scaled down operations or shut paid gaming platforms altogether.
The Promotion and Regulation of Online Gaming Act, 2025, has effectively prohibited all real-money games involving monetary stakes—whether skill-based or chance-based. This sweeping move has disrupted the business models of many firms that once operated in a grey area of state-level laws and court rulings.
The government’s ban has left little room for real-money gaming companies to operate within India. While some may try to pivot towards free-to-play models, casual gaming, or overseas markets, these strategies involve high costs and uncertain revenue streams. Legal challenges are being mounted, but clarity on their outcomes will take time.
The layoffs at Gameskraft underscore the pressure on the entire ecosystem. Apart from lost jobs, the industry now faces shrinking investor confidence, rising compliance costs, and the risk of talent migration to other sectors. For many gaming firms, survival will depend on how quickly they can reinvent their business models or diversify beyond real-money formats.