Gameskraft’s Performance Before Real-Money Gaming Ban

Gameskraft’s recent fiscal year 2025 report highlights strong financial performance just prior to the disruption caused by the Indian government’s ban on real-money gaming. This company achieved notable revenue growth while maintaining profitability.

Revenue Growth and Financial Figures

In FY25, Gameskraft’s revenue from operations escalated by 12%, reaching Rs 3,896 crore compared to Rs 3,475 crore in FY24, as per the consolidated financial statements obtained from the Registrar of Companies (RoC). The company operates widely-used gaming applications, including Rummy Culture, Playship, Pocket 52, RummyPrime, Ludo Culture, and Rummy Time.

The revenue, termed gross gaming revenue, primarily stemmed from platform fees or commissions, amounting to Rs 3,882 crore, which constitutes 99.6% of overall operational revenue with a growth rate of 12.2%. Additionally, its real estate sector contributed Rs 11 crore, while various other income streams brought in Rs 3 crore in FY25.

Located in Bengaluru, the company generated an extra Rs 113 crore from non-operating sources, raising its total revenue to Rs 4,009 crore for FY25.

Expenditure and Cost Breakdown

From the expenditure perspective, advertising and promotional costs emerged as the primary expense, accounting for 75% of total expenditure. This category saw an increase of 58%, rising to Rs 2,072 crore in FY25 from Rs 1,315 crore in FY24. In contrast, employee benefits decreased by 11% to Rs 410 crore, while legal and professional fees dropped by 22.8%, amounting to Rs 112 crore in FY25.

Overall, the company’s total expenses increased by 24% to Rs 2,766 crore in FY25 compared to Rs 2,232 crore in FY24. Interested parties should consult various sources for more detailed cost breakdowns from the previous fiscal year.

Profitability Despite Increased Costs

Despite the surge in advertising expenditures, Gameskraft successfully retained profitability, primarily due to robust revenue and effective cost management in other areas. The net profit reached Rs 976 crore in FY25, reflecting a slight increase from Rs 947 crore in FY24. Notably, exceptional items worth Rs 270.5 crore were excluded from the net profit calculation.

Gameskraft’s return on capital employed (ROCE) and EBITDA margin were recorded at 58.40% and 31.63%, respectively. Per unit, the company spent Rs 0.71 to generate one rupee of operational revenue in FY25. Current assets were valued at Rs 2,232 crore, which included Rs 253 crore in cash and bank balances, and Rs 1,319 crore allocated to mutual funds.

Impact of the Government’s Ban on Real-Money Gaming

While Gameskraft’s FY25 performance remained unaffected, the introduction of the Indian government’s new gaming law, which took effect in August 2025, has compelled the company to cease its real-money operations. This includes terminating the “Add Cash” features and discontinuing the well-known rummy platform RummyCulture, alongside pausing its poker initiative Pocket52 earlier in the year.

Mandated by the Promotion and Regulation of Online Gaming Act, Gameskraft has publicly announced its intention to comply fully rather than challenge the ban legally. Given that real-money gaming made up nearly all of Gameskraft’s revenue in FY25, this prohibition is projected to have a substantial effect on its business model, revenue streams, and future growth.