Gameskraft expands layoffs to 400+ amid real-money gaming ban
What's the story
Leading real-money gaming company, Gameskraft, has announced a major round of layoffs, according to Moneycontrol. The Bengaluru-based firm has let go of over 400 employees as part of an organizational restructuring across various teams and functions. This is a significant increase from the earlier layoff figure of around 120 employees. The decision comes in light of the recent online gaming law imposed by the government, which banned real-money games.
Company response
Layoffs driven by business continuity considerations
In a statement to Moneycontrol, Gameskraft explained that the layoffs were driven by business continuity considerations. The company said this was in light of the Promotion and Regulation of Online Gaming Act, 2025, which has fundamentally changed the operating environment for real-money gaming companies. Despite this, sources indicate that the total number of layoffs could be higher than reported. Currently, Gameskraft is said to have less than 100 employees remaining from an earlier workforce of around 600.
Additional issues
Fraud scandal involving former CFO
The layoffs come as Gameskraft deals with a fraud scandal involving its former CFO Ramesh Prabhu. He has allegedly embezzled ₹270.43 crore over nearly five years. An FIR was lodged against him at Bengaluru's Marathahalli police station after Gameskraft filed a complaint on September 16. This is another major hurdle for the company amid its restructuring efforts due to the new online gaming law.
Industry effects
Impact of new online gaming law on gaming companies
India's new online gaming law bans online money games where a deposit is made with hope of winning. This has forced several companies, including Gameskraft, to shut down their core real-money gaming products and lay off employees. Other affected firms include Head Digital Works (A23), Mobile Premier League (MPL), Nazara Technologies-backed Baazi Games (Moonshine Technology), and Games24x7. Despite these challenges, Gameskraft has promised its laid-off employees one month of pay for every completed year of service, capped at three months.
Fiscal report
Gameskraft's financial performance in FY25
In FY25, Gameskraft's net profit fell 25% to ₹706 crore from ₹947 crore in FY24. The company attributed this decline mainly to the full-year impact of the 28% Goods and Services Tax regime. However, it also reported a 13.9% increase in revenue for FY25 at ₹4,009 crore from ₹3,521 crore in FY24.