Gameskraft lays off over 400 employees; says, 'The decision was driven by business continuity...'

Gaming company Gameskraft has laid off more than 400 employees as part of a sweeping organisational restructuring, up from the 120 cuts announced in September.

The Bengaluru-based startup said the move was driven by business continuity concerns following the enforcement of the Promotion and Regulation of Online Gaming Act, 2025, which has effectively banned real-money gaming in India.

The law, which bans any online game where users deposit money with the expectation of earning winnings, has forced several operators to halt their core businesses. Gameskraft, which runs RummyCulture, Playship, RummyPrime and LudoCulture, discontinued its real-money offerings after the Act came into effect in August. Industry peers such as Head Digital Works (A23), Games24x7, Baazi Games and Mobile Premier League (MPL) have also carried out large-scale layoffs or pivots into other categories.

The company said affected employees will receive one month of pay for every completed year of service, capped at three months, along with notice pay, a one-time ex-gratia payout, and up to 45 days of leave encashment.

Group health insurance will remain active until March 2026 or until an individual joins another employer, while term life cover, up to twice the employee’s CTC or Rs 5 crore, will stay valid through June 2026. Gameskraft has also offered placement assistance, referrals, and waived recoveries related to joining bonuses, relocation and notice period buyouts.

Founded in 2017 by Prithvi Raj Singh, the company had about 600 employees before the restructuring. Sources told Moneycontrol that fewer than 100 remain.

Gameskraft is also dealing with a financial fraud case involving its former CFO Ramesh Prabhu, who allegedly siphoned off around Rs 270 crore over five years. An FIR was filed at Bengaluru’s Marathahalli police station following the company’s complaint in September.

The startup reported a 13.9% rise in revenue to Rs 4,009 crore in FY25 from Rs 3,521 crore a year earlier, but net profit declined 25% to Rs 706 crore due to higher tax outflows under the 28% GST rate and a one-time accounting adjustment related to unauthorised transactions.