Is Gameskraft's Layoff of 120 Employees a Response to New Gaming Regulations?
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Synopsis
In a significant move, Gameskraft has announced the layoff of 120 employees due to new gaming regulations that have impacted the industry. This decision reflects the challenges faced by real-money gaming companies in adapting to recent legislative changes.
Key Takeaways
- Gameskraft is laying off 120 employees due to new regulations.
- The Promotion and Regulation of Online Gaming Act, 2025, has created challenges for the sector.
- Group health insurance will remain active until March 2026.
- Other companies in the industry are also making layoffs.
- This law bans online money games requiring deposits.
New Delhi, Sep 18 (NationPress) Gameskraft announced on Thursday that it will be terminating the employment of 120 individuals following the enactment of the Promotion and Regulation of Online Gaming Act, 2025, which has thrust real-money gaming companies into unfamiliar territory.
In its official statement, the company explained that, similar to others in the industry, Gameskraft is working through this new regulatory framework and confronting a rapidly changing business environment.
“The consequences of this new legislation are intricate, extensive, and have had an immediate and significant effect on both the sector and Gameskraft. In a bid to be transparent, we wish to communicate that despite our best efforts, the current regulatory landscape has forced us to completely halt our operations and has left us with no alternative but to commence a company-wide restructuring,” the statement reads.
“After thorough consideration, as part of this restructuring, we will be letting go of approximately 120 Krafters across various teams and functions, a decision that weighs heavily on our hearts. As the business continues to adapt to external changes, further structural adjustments may be necessary,” it continued.
Group health insurance coverage will remain active until March 2026 or until an individual secures new employment, whichever comes first.
“This has been one of the most challenging decisions in Gameskraft's journey. Each Krafter has contributed meaningfully to our identity, and we are profoundly grateful for their dedication, enthusiasm, and belief in our mission,” stated Prithvi Singh, Founder and CEO of Gameskraft.
Looking forward, Gameskraft indicated that it will persist in evaluating and adjusting as new developments arise.
Just last week, online gaming firm Zupee announced it would lay off 170 employees, roughly 30 percent of its workforce, following the government's passage of a bill banning online games involving monetary stakes in August.
Zupee joins other real-money gaming (RMG) companies like Games24x7, Baazi Games, and Mobile Premier League that have also reduced their workforce in response to the ban.
This law has prohibited online money games that require users to deposit funds with the anticipation of earning money.
Point of View
It's crucial to understand that the recent layoffs at Gameskraft illustrate the evolving nature of the online gaming industry. The new regulations impose challenges that can reshape the future of real-money gaming. Companies must navigate this landscape carefully to ensure their survival and adapt to ongoing changes.
NationPress
20/09/2025
Frequently Asked Questions
Why is Gameskraft laying off employees?
Gameskraft is laying off employees due to the impact of the Promotion and Regulation of Online Gaming Act, 2025, which has significantly affected real-money gaming operations.
How many employees will be affected?
Approximately 120 employees will be affected as part of the restructuring process at Gameskraft.
What will happen to employee benefits?
Group health insurance coverage will remain active until March 2026 or until the individual finds new employment.
What other companies are affected by the new regulations?
Other companies like Zupee, Games24x7, Baazi Games, and Mobile Premier League have also made layoffs due to the new regulations.
What does the new law entail?
The new law prohibits online money games that require users to deposit funds with the expectation of winning money.
