My11Circle parent fires 400 employees over real money gaming ban
What's the story
Games24x7, the parent company of fantasy sports platform My11Circle, has begun a major layoff process. The move comes as a result of financial strain and regulatory uncertainty following an online real money gaming ban in India. The company is laying off around 400 employees as part of this restructuring process.
Strategic pivot
Restructuring and regulatory challenges
As part of its restructuring, Games24x7 plans to retain some employees while shifting focus toward the free-to-play gaming segment. This space is considered less susceptible to regulatory challenges. However, it remains unclear if the company will join Head Digital Works, which operates A23, in the legal battle against the Promotion and Regulation of Online Gaming Act, 2025.
Financial overview
Financials and previous layoffs
Games24x7 has been under financial pressure even as it scales revenues. In FY23, the company reported an operating revenue of ₹1,988 crore, a 70% increase from the previous year. However, it also posted a net loss of ₹199 crore, an improvement over the loss of ₹281 crore in FY22. This is the second round of layoffs for Games24x7 within a year.
Industry impact
MPL's parent company also downsized workforce
The layoffs at Games24x7 come as MPL's parent firm Galactus Funware Technology Pvt Ltd has also downsized its workforce by nearly 600-700 employees, nearly its entire Indian team. The cuts were prompted by the government's blanket ban on real-money gaming operations. A few employees are likely to be relocated abroad as part of the company's renewed focus on gaming strategy in the US market.