Bengaluru-based online gaming firm Gameskraft has announced the layoff of 120 employees across teams and functions, following the enactment of the Promotion and Regulation of Online Gaming Act, 2025.
The legislation, passed by Parliament on August 21, bans all forms of real-money online gaming, including platforms where users deposit funds with the expectation of monetary winnings.
The company stated that the new law has had an “immediate and profound impact” on its operations, forcing a complete halt to its core business and prompting a company-wide restructuring.
Gameskraft operated popular platforms such as RummyCulture and Pocket52, both of which have now been suspended.
Statement from Leadership: “A Very Heavy Heart”
In an official statement, Prithvi Singh, Founder and CEO of Gameskraft, acknowledged the difficulty of the decision.
“After careful deliberation, as part of this restructuring, we will be, as of now, letting go of about 120 Krafters across teams and functions—a decision we make with a very heavy heart,” he said.
Prithvi emphasized that the layoffs were driven entirely by external regulatory changes and not by employee performance.
“Our respect for our people remains unchanged, and we will try our best to support them as they transition into their next chapters,” he added.
Support Measures for Affected Employees at Gameskraft
Gameskraft has announced several support measures for the impacted employees:
- Group health insurance will remain active until March 2026, or until the employee joins a new organization, whichever is earlier.
- Employees who had opted for dependent parent coverage will retain uninterrupted access.
- Leave encashment will be calculated based on total salary, not just basic pay.
- The company plans to offer outplacement support and give priority consideration to laid-off employees for future roles.
These steps reflect Gameskraft’s commitment to easing the transition for affected staff, even as it navigates a rapidly shifting business landscape.
Looking Ahead: No Legal Challenge, Exploring New Avenues
Unlike some competitors, Gameskraft has stated it will not challenge the ban legally.
Instead, the company is exploring new opportunities within India’s digital gaming ecosystem.
It may focus on e-sports and other non-monetary formats that remain permissible under the new law.
The company had around 448 employees before the layoffs, according to Tracxn data.
While the current round affects 120 staff, further structural changes may be required as the business continues to adapt.
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