Gameskraft lays off 120 employees weeks after the ban on real-money gaming

India’s gaming sector is facing a severe shake-up in the wake of the Promotion and Regulation of Online Gaming Act, 2025, with Bengaluru-based Gameskraft becoming the latest casualty.

Advertisment

The company on Thursday confirmed that it has suspended operations entirely and begun a sweeping restructuring exercise that includes laying off about 120 employees.

The move comes just weeks after Parliament passed the new law banning online real-money gaming. Policymakers have defended the ban as a safeguard against addiction and financial losses, while industry leaders warn that it risks driving users towards unregulated offshore platforms.

Founded in 2017, Gameskraft grew into one of India’s largest online gaming companies with offerings across card games, casual titles, and real-money formats. But the regulatory framework, along with rising compliance obligations and tax burdens, has left the company unable to continue its business.

“Despite our best efforts, the current regulatory landscape has made us completely stop our business and has left us with no choice but to initiate a company-wide restructuring,” the company told employees in a note.

The layoffs affect multiple teams and functions, with the company warning that further structural changes may follow. Founder and CEO Prithvi Singh called the decision “one of the most difficult” in Gameskraft’s journey, emphasising that it was driven by the external environment rather than employee performance.

The announcement comes at a time when Gameskraft is already battling internal turmoil. Earlier this month, the company accused former CFO Ramesh Prabhu of siphoning off Rs 270.43 crore over nearly five years through personal trading in futures and options. The case is under police investigation.

Despite the crisis, the company has announced an extensive support package for affected staff. This includes medical insurance coverage until March 2026, continuation of wellness and health services through May 2026, the option to convert group policies into individual plans, leave encashment based on full salary, and priority rehiring if Gameskraft pivots into new business areas. Outplacement assistance, referrals, and recommendation letters will also be provided.