Tuesday, October 7, 2025
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Real-Money Gaming Ban Leads to 2,000 Layoffs Across India

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India’s real-money gaming (RMG) industry is undergoing a major upheaval following the enactment of the Promotion and Regulation of Online Gaming Act, 2025.

The legislation came into effect in August. It bans all online games involving monetary stakes, whether based on skill, chance, or a combination of both.

As a result, nearly 2,000 employees across leading RMG firms have been laid off, setting off a scramble for jobs in adjacent sectors.

The job cuts span major players including Mobile Premier League (MPL), Games24x7, Zupee, PokerBaazi, Head Digital Works, and Gameskraft.

Staffing firm Xpheno estimates that the top seven RMG firms employed around 6,000 people, with roughly one-fourth entering the job market even before the ban was formally enacted.

Gaming Companies Halt Operations or Pivot to New Models

The layoffs are part of a broader restructuring across the industry.

MPL has suspended all money-based operations in India. CEO Sai Srinivas informed employees that the company would generate “zero revenue from India in the future.”

Games24x7, which owns My11Circle and RummyCircle, is cutting 70% of its workforce—roughly 500 employees—after its domestic revenue model was wiped out.

Zupee has announced the layoff of 170 employees, accounting for about 30% of its staff. The company is now shifting its focus to social games and entertainment-based products.

The company has also launched Zupee Studio, a short-form video content platform, as part of its diversification strategy.

Gameskraft, another major operator, has halted all real-money operations and is expected to let go of most of its 700 employees after October 31.

The company had prepaid three months’ salary to staff following the passage of the law.

Senior Executives and High-Earners Also Impacted

The layoffs have affected more than just junior staff. Several senior executives are exploring exits as companies either shut down or pivot to new business models.

Many of these professionals drew annual salaries in the ₹4–5 crore range. The collapse in revenue streams has made those compensation levels unsustainable.

Some employees have turned to moonlighting, with companies unable to enforce contracts amid the regulatory uncertainty.

Staffing firm Longhouse Consulting estimates that 5,000–6,000 employees could ultimately be affected across 8–10 prominent companies.

Industry Pushback and Legal Challenges

The ban has prompted legal action from some operators.

Head Digital Works, which runs the A23 platform, has filed a challenge in the Karnataka High Court questioning the constitutionality of the law.

The Supreme Court plans to consolidate multiple pending challenges to avoid conflicting rulings.

Industry associations have also written to Home Minister Amit Shah, warning that up to 200,000 jobs could be at risk.

The sector, previously valued at $3.8 billion, is facing a rapid decline in investor confidence, with estimates suggesting a potential loss of ₹25,000 crore in foreign direct investment and ₹20,000 crore in tax revenues.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus