Gurugram-based gaming startup Zupee has announced the layoff of 170 employees—approximately 30% of its workforce—following the enactment of the Promotion and Regulation of Online Gaming Act, 2025.
The legislation, passed in August, imposes a blanket ban on real-money online games, directly impacting Zupee’s core business model and prompting a strategic restructuring.
The company, known for culturally familiar games like Ludo, Snakes & Ladders, and Carrom, joins other real-money gaming (RMG) platforms such as Games24x7, Baazi Games, and Mobile Premier League in initiating workforce reductions in response to the new law.
Zupee CEO Acknowledges Difficult Decision Amid Sector Disruption
Zupee’s founder and CEO, Dilsher Singh Malhi, described the layoffs as a “tough call” but necessary to adapt to the new regulatory framework.
“Our colleagues who are leaving us have been an integral part of Zupee’s journey, and we will always remain thankful for their contribution,” Dilsher said in a public statement.
The company emphasized its commitment to supporting affected employees through a comprehensive transition package, including financial, medical, and career assistance.
Support Measures for Affected Employees
Zupee has outlined a multi-layered support plan for the 170 impacted employees:
- Financial Aid: In addition to payment in lieu of the notice period, employees will receive additional financial support based on their tenure. For long-serving staff, this may extend up to six months.
- Health Coverage: Health and insurance benefits will remain active for the full term after departure.
- Medical Support Fund: Zupee has created a ₹1 crore medical support fund to provide additional security during the transition.
- Career Assistance: A dedicated team has been formed to help affected employees find new opportunities. The company has also committed to prioritizing re-hiring laid-off staff when new roles become available.
Impact of the Online Gaming Act, 2025
The Promotion and Regulation of Online Gaming Act, 2025, bans games that involve monetary stakes and prohibits advertisements, promotions, and financial transactions related to such platforms.
Violations can result in up to three years of imprisonment and fines of ₹1 crore. Advertising or sponsoring banned games may lead to two years in prison or a ₹50 lakh fine.
The law is expected to significantly disrupt India’s $3.8 billion gaming industry, with estimates suggesting a potential loss of 2 lakh jobs, ₹25,000 crore in foreign direct investment, and ₹20,000 crore in tax revenues.
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