“Don’t Come to Office From Tomorrow”: 120 Employees Laid Off, Families Face Uncertain Future
“Don’t Come to Office From Tomorrow”: 120 Employees Laid Off, Families Face Uncertain Future
Real-money gaming company Gameskraft has laid off nearly 120 employees in a major restructuring exercise triggered by regulatory challenges, increased GST, and a financial fraud scandal.
The layoffs are directly linked to the Indian government’s ban on online real-money games, which has severely impacted the gaming industry. Compounding the crisis, the company’s former CFO, Ramesh Prabhu, is accused of siphoning off ₹270.43 crore over a five-year period. An FIR has been registered against him at Marathahalli Police Station, Bengaluru, following a complaint filed by the company.
In a statement, Gameskraft founder Prithvi Singh said:
“This is the toughest decision in our journey. Every employee has contributed to shaping the company. Unfortunately, external factors forced us to take this step. This does not reflect on their talent or dedication.”
The company confirmed that the layoffs could increase further as restructuring continues. Impacted employees will receive benefits as per their contracts, including leave encashment, severance based on salary, and group health insurance coverage until March 2026 or until they secure new jobs. Employees also have the option to convert their corporate health plan into individual policies.
Wider Crisis in India’s Gaming Industry
Gameskraft is not alone. Several major real-money gaming companies have slashed jobs after the government’s ban and the steep 28% GST on online gaming:
- Head Digital Works (online rummy platform) cut 500 jobs, nearly two-thirds of its workforce.
- Zupee recently laid off 170 employees.
- Mobile Premier League (MPL) may reduce 60–80% of its staff in India, according to reports.
- Baazi Games plans to cut 200 employees (45% of its staff).
- Games24x7 has also announced mass layoffs.
Founded in 2017, Gameskraft had already shut down its online rummy apps after the law was passed in Parliament, and in May 2025, it discontinued its online poker platform Pocket52.
Financial Impact
Earlier this month, Gameskraft reported a 25% drop in net profit, falling from ₹947 crore in FY24 to ₹706 crore in FY25, citing the 28% GST hike as the primary reason. The company’s tax liability surged from ₹1,512 crore in FY24 to ₹2,526 crore in FY25.
The company also noted one-time adjustments of ₹231 crore in unauthorized transactions. Despite the profit decline, revenue grew 13.9%, reaching ₹4,009 crore in FY25 compared to ₹3,521 crore in FY24.
