Online gaming company Gameskraft Technologies has laid off over 400 employees, more than half its workforce, following the implementation of the Promotion and Regulation of Online Gaming Act, 2025, which has disrupted India’s real money gaming industry. The company said the restructuring was necessary after the new law rendered several of its verticals unviable.
In a statement, Gameskraft noted, “The decision was driven by business continuity considerations following the regulatory changes, which fundamentally altered the operating environment for real money gaming firms.” Once among India’s fastest-growing gaming startups, the firm was forced to review projects, expenses, and team structures to sustain operations.
Despite the large-scale layoffs, Gameskraft described the transition as “empathy-led,” offering a robust support package. All affected employees – including probationers and interns – received three months’ salary, ex-gratia compensation, and severance pay of one month per completed year of service (up to three months). Additional benefits include extended medical and life insurance coverage till 2026, mental health support, and career transition assistance.
The layoffs come amid internal turmoil following a ₹250 crore financial fraud allegedly committed by former CFO Prabhu, who diverted company funds for speculative trading before disappearing in early 2025.
Despite the challenges, Gameskraft reported a 12% rise in FY25 revenue to ₹3,896 crore, though net profit dropped 25% to ₹706 crore due to exceptional losses and higher taxes.
With regulatory uncertainty clouding India’s online gaming sector, Gameskraft’s move underscores the industry’s struggle to adapt – and survive in a rapidly changing policy landscape.
