Layoffs of 120 workers at Gameskraft due to the Recently Enacted Online Gaming Law; Company Stated It Was Left With No Other Option
Gameskraft Layoffs: 120 Employees Affected Amidst Online Gaming Ban
In a significant move, Gameskraft, a leading real-money gaming company based in Bengaluru, has announced the layoff of around 120 employees. The company, known for platforms like Rummyculture and Pocket52, has been hit hard by the recent ban on games involving monetary stakes, as outlined in the Promotion and Regulation of Online Gaming Act, 2025.
The layoffs affected employees across various functions, including operations, technology, marketing, finance, and customer support. Gameskraft's founder, Prithvi Singh, described the decision as "painful but unavoidable".
In a statement, Singh expressed the company's respect for its employees and promised to support them as they transition into their next chapters. He also confirmed that Gameskraft will provide severance packages, leave encashment, and extended health insurance coverage to the affected employees.
According to reports from PTI, Gameskraft will also offer severance packages to the laid-off employees. Additionally, staff at Gameskraft have the option to convert the company's group health policy into individual plans, giving them continued access to medical cover. The health insurance scheme provided by Gameskraft will remain valid until March 2026 or until an employee finds new work, whichever comes first.
The online gaming sector in India has been severely impacted by the ban, with nearly 2,000 jobs lost since the law came into effect. Major players like MPL, as well as smaller startups, have scaled back their ambitions or shut their real-money offerings altogether. The law has reshaped the landscape of India's digital entertainment sector, affecting companies that thrived on rummy, poker, and fantasy sports apps.
Analysts suggest that many firms will either seek overseas markets or explore free-to-play models to stay afloat. Some industry voices believe the current crisis could lead to a healthier ecosystem in the long run, with companies focusing more on casual and skill-based games that don't involve monetary stakes.
There is growing talk of expanding into international markets where regulation is more predictable. However, the search results do not provide information about other companies in the real-money online gaming industry that have laid off employees following the passage of the Online Gaming Bill.
It is important to note that the layoffs at Gameskraft are not a reflection of employee performance but a direct consequence of the new legal environment that has outlawed the company's core business model. The gaming sector in India is facing a challenging period, but there is hope that it will emerge stronger and more focused on providing engaging, skill-based, and compliant gaming experiences for its users.
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