India’s real money gaming industry was shaken to its core when the Online Gaming Bill was passed last month. The bill banned all online games that involved real money and recognised esports as an official sport. While a section of the industry celebrated the move saying that it would give esports a much-needed push in the country, another section was apprehensive of the decision as it would mean job cuts in various companies. And after some popular names like Zupee, Mobile Premier League (MPL) and Games24x7 laid off employees, other companies are also following suit.
The most recent layoffs news is from Gameskraft, a huge real-money gaming firm. The company has recently laid off around 120 employees according to a PTI report and said in a statement that they had ‘no choice’. Read on to know more.
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Gameskraft, a Bengaluru-based company, is best known for platforms such as Rummyculture and Pocket52. Both of these platforms were forced to shut or suspend operations recently. The job cuts in Gameskraft come in the wake of the Promotion and Regulation of Online Gaming Act, 2025, which bans all forms of games involving monetary stakes.
The law reshaped the landscape of India’s digital entertainment sector almost overnight, hitting companies that once thrived on rummy, poker, and fantasy sports apps.
Gameskraft founder Prithvi Singh acknowledged the human cost of the decision, describing the layoffs as “painful but unavoidable”. He insisted the move was not a reflection of employee performance but a direct consequence of the new legal environment that has outlawed the company’s core business model.
“While this step is driven entirely by the external environment and the need to adapt to a new reality, it in no way reflects on their talent or dedication. Our respect for our people remains unchanged, and we will try our best to support them as they transition into their next chapters,” he said as per PTI.
The layoffs affected workers across several functions, including operations, technology, marketing, finance, and customer support. To soften the impact, Gameskraft has promised severance packages, leave encashment, and extended health insurance coverage. The insurance scheme will remain valid until March 2026 or until an employee finds new work, whichever comes first. Staff also have the option to convert the company’s group health policy into individual plans, giving them continued access to medical cover.
Gameskraft is not the only company to announce layoffs recently. Across India, nearly 2,000 jobs have been lost in the online gaming sector since the ban came into effect. Major players like MPL, as well as smaller startups, have scaled back their ambitions or shut their real-money offerings altogether.
Investor sentiment has also reportedly taken a hit. Backers who once poured funds into gaming ventures are now hesitant, citing high compliance costs and an unclear regulatory roadmap. Analysts suggest that many firms will either seek overseas markets or explore free-to-play models to stay afloat.
Despite the gloom, some industry voices believe the crisis could lead to a healthier ecosystem in the long run, with companies focusing more on casual and skill-based games that don’t involve monetary stakes. There is also growing talk of expanding into international markets where regulation is more predictable.
Also read: Real money gaming platform Zupee lays off 30 per cent employees after Online Gaming Bill