Gameskraft cuts 120 jobs amid gaming ban fallout and ₹270 cr fraud scandal

Gameskraft stated that affected employees will receive contractual severance benefits, including leave encashment, with group health insurance active until March 2026 or new employment, and an option to convert corporate policies into individual plans

Real-money gaming platform Gameskraft has initiated company-wide layoffs affecting around 120 employees across departments, as part of a major restructuring effort. The move follows mounting regulatory challenges facing the online gaming industry in India and coincides with internal financial troubles.

The layoffs are a response to the ongoing impact of India’s recent legislation banning real-money online games, where users deposit funds with the expectation of monetary winnings. The company stated that the restructuring is still underway, and additional job cuts may follow.

In a statement, Gameskraft founder Prithvi Singh called the decision “one of the most difficult” in the company's history. “While this step is driven entirely by external factors, it in no way reflects the talent or commitment of our team,” he said, adding that the company will support affected employees through the transition.

Financial scandal and regulatory pressure compound troubles

The layoffs come at a time when Gameskraft is grappling with a financial fraud case involving its former Chief Financial Officer, Ramesh Prabhu. The company has filed an FIR against Prabhu at the Marathahalli police station in Bengaluru, alleging he siphoned off ₹270.43 crore over nearly five years. The case has intensified scrutiny of the company’s internal controls.

As part of its severance package, Gameskraft confirmed that affected employees will receive payouts in line with their contracts, including leave encashment. Group health insurance coverage will remain active until March 2026 or until the employee secures a new job. Employees will also have the option to convert their corporate insurance into individual plans.

Gameskraft had earlier discontinued operations of its online rummy app Rummyculture and paused its poker platform Pocket52, in response to the tightening regulatory framework. The company reported a 25% decline in net profit for FY25, dropping to ₹706 crore from ₹947 crore the previous year, citing both tax increases and exceptional expenses related to unauthorised transactions.

Wider industry impact

Gameskraft joins a growing list of gaming firms downsizing due to the government's real-money gaming ban. Head Digital Works recently cut 500 jobs, Zupee announced 170 layoffs, and Mobile Premier League (MPL) is reportedly reducing up to 80% of its workforce. Baazi Games and Games24x7 have also undertaken significant job cuts.

Despite a 13.9% growth in revenue to ₹4,009 crore in FY25, Gameskraft’s rising tax burden under the 28% GST regime and internal setbacks have forced a sharp strategic pivot.