Gameskraft Lays Off Over 80% of Workforce Following New Gaming Law
Real-money gaming company Gameskraft has terminated more than 400 employees, representing over 80% of its workforce, following the implementation of India’s new online gaming regulations. The Bengaluru-based firm now employs fewer than 100 people, down from approximately 600 previously.
Key Takeaways
- Gameskraft laid off 400+ employees (80%+ of workforce)
- Layoffs triggered by Promotion and Regulation of Online Gaming Act, 2025
- Company now has fewer than 100 employees remaining
- Multiple gaming companies affected by new regulations
Official Statement on Layoffs
In a statement to Moneycontrol, Gameskraft explained: “The decision was driven by business continuity considerations, following the implementation of the Promotion and Regulation of Online Gaming Act, 2025, which triggered a fundamental shift in the operating environment for real money gaming companies.”
Severance Package Details
Affected employees will receive:
- One month’s salary for each completed year of service (capped at three months)
- Notice pay as per employment contracts
- One-time ex gratia payment
- Up to 45 days of leave encashment
- Group health insurance until March 2026 or new employment
- Term life insurance coverage until June 30, 2026
The company is also providing job placement assistance, referrals, recommendation letters, and priority consideration for future roles. All recoveries for joining bonuses and relocation expenses have been waived.
Previous Layoffs and Legal Issues
These cuts follow September layoffs of approximately 120 employees. Separately, Gameskraft filed a complaint against former CFO Ramesh Prabhu, alleging he siphoned nearly Rs 270.43 crore over five years. An FIR was registered at Bengaluru’s Marathahalli police station.
Impact of New Gaming Regulations
The Promotion and Regulation of Online Gaming Act, 2025 bans money-based games where users deposit funds expecting returns. This has forced several companies to discontinue real-money gaming operations:
- Head Digital Works (A23)
- Mobile Premier League (MPL)
- Baazi Games (Moonshine Technology)
- Games24x7
Head Digital Works and other operators have challenged the law’s constitutional validity. The Supreme Court is hearing the case, with the next session scheduled for November 26.
