Gameskraft Faces Layoffs Amid Government Ban on Online Money Games

Gameskraft, a prominent player in India’s real-money gaming sector, has made the difficult decision to lay off around 120 employees across various departments as part of a restructuring plan prompted by the government’s comprehensive ban on online money gaming. This challenging period for the company is exacerbated by a fraud scandal involving its former CFO, Ramesh Prabhu, who is accused of diverting Rs 270 crore over a span of nearly five years. Following the company’s complaint, a First Information Report (FIR) has been lodged against him at the Marathahalli police station in Bengaluru.

The employees affected by these layoffs will receive severance compensation, payment for unused leave, and extended health insurance coverage until March 2026, with the opportunity to switch to individual health policies. Founder Prithvi Singh remarked that the decision resulted from “external factors” rather than issues related to employee performance, asserting that Gameskraft is committed to aiding departing employees during this transition.

The Rise and Challenges of Gameskraft

Established in 2017, Gameskraft had quickly become one of the most rapidly expanding firms in India’s real-money gaming industry, known for its platforms such as Rummyculture and Pocket52, both of which have ceased operations following the implementation of the new legislation.

Financial Performance Amidst Challenges

Reports indicate that the net profit for FY25 experienced a decline of 25%, dropping to Rs 706 crore due to the 28% Goods and Services Tax (GST), increased taxation, and one-time accounting adjustments. On a more positive note, the company’s revenue rose by 12%, soaring from Rs 3,475 crore in FY24 to Rs 3,896 crore.

Industry-Wide Downsizing

Gameskraft is not alone in making cuts following the recent ban. Other gaming firms are also downsizing their operations. A23 Rummy (Head Digital Works) has reduced its workforce by 500, Zupee has cut 170 jobs, MPL is trimming its staff by as much as 60%, and Baazi Games has decreased its headcount by 200. Additionally, Games24x7 is reportedly laying off 70% of its employees.