Gameskraft, a real-money gaming company based in Bengaluru, has laid off more than 400 employees as part of a company-wide restructuring, up from around 120 earlier this year, according to a statement to Moneycontrol. Sources suggest the workforce may now be fewer than 100, down from about 600.
Reasons for the layoffs
The job cuts follow the implementation of India’s new online gaming law, the Promotion and Regulation of Online Gaming Act, 2025, which banned real-money games. Gameskraft said the decision was necessary for business continuity, given the significant change in the operating environment for real-money gaming companies.
The layoffs also come amid a major fraud case involving the company’s former CFO, Ramesh Prabhu, who allegedly misappropriated Rs 270.43 crore over nearly five years. An FIR has been filed against him in Bengaluru’s Marathahalli police station.
Impact of the online gaming law
The law prohibits games where users deposit money with the expectation of winning. This forced Gameskraft and other companies such as Mobile Premier League, Baazi Games, Games24x7, and Head Digital Works to discontinue core real-money products and lay off staff. Some operators have challenged the law’s constitutionality in the Supreme Court, with the next hearing scheduled for November 26.
Support for laid-off employees
Gameskraft is providing severance packages including one month of pay for each completed year of service (capped at three months), notice pay, a one-time ex-gratia payout, and up to 45 days of leave encashment. Group health insurance coverage will continue until March 2026, and term life cover remains valid until June 30, 2026. The company is also offering job placement assistance, referrals, recommendation letters, and priority consideration for future openings, while waiving recoveries related to bonuses, relocation, and notice period buyouts.
Financial performance
Gameskraft reported a 25 percent drop in net profit to Rs 706 crore in FY25 from Rs 947 crore in FY24, primarily due to the full-year impact of the 28 percent GST and a one-time accounting adjustment of Rs 231 crore. Revenue for FY25 grew 13.9 percent to Rs 4,009 crore from Rs 3,521 crore in FY24.
The layoffs reflect both regulatory pressures and internal challenges, marking a difficult period for the company and India’s real-money gaming sector.
