Real-money gaming ban: Gameskraft fires 120 employees after new bill
What's the story
Online gaming company Gameskraft has announced plans to lay off 120 employees, following the passage of the Online Gaming Bill, 2025. The new legislation has a major impact on the real-money gaming industry. In its statement, Gameskraft said that "the implications of this legislation are complex and far-reaching," and have had an "immediate and profound impact" on both the sector and the company.
Business impact
New regulatory environment has forced us to halt operations
The firm further stated that the new regulatory environment has forced them to completely halt their operations. This has left them with no choice but to start a company-wide restructuring process. "After careful deliberation, as part of this restructuring, we will be letting go of about 120 Krafters across teams and functions," Gameskraft said in its statement.
Employee support
Will provide full support to affected employees: Gameskraft
Despite the layoffs, Gameskraft has promised to stand by all affected employees as per their employment agreements. This includes leave encashment based on total salary and not just basic salary. The company also said that group health insurance will remain active until March 2026 or when the affected employees join a new job, whichever is earlier.
Industry effect
Online Gaming Bill passed by Parliament on August 21
The Promotion and Regulation of Online Gaming Act, 2025, which was passed by Parliament on August 21, bans all kinds of online money games. It also prohibits advertisements related to such games and prevents banks and financial institutions from transferring funds for any of these games. The law has already forced many companies in the real-money gaming business to lay off most of their staff.
Financial report
Gameskraft lodges complaint against ex-CFO for misappropriating funds
Earlier this month, Gameskraft lodged a police complaint against its former CFO for allegedly siphoning off over ₹231 crore. The Bengaluru-based firm reported a net profit of ₹706 crore on revenue of ₹4,009 crore in FY25. This was lower than the previous year's net profit of ₹947 crore on revenue of ₹3,475 crore. The FY25 profit was also impacted by "a one-time accounting adjustment of past unsanctioned transactions amounting to approximately ₹231 crore," it said in a statement.