Is Zupee Really Laying Off 170 Employees After the Gaming Ban?
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Synopsis
In a significant move, Zupee has announced the layoff of 170 employees, approximately 30% of its workforce, following a government ban on real-money gaming. This decision underscores the challenges facing the online gaming industry amidst tightening regulations. With additional support measures in place, how will this impact the future of gaming in India?
Key Takeaways
- Zupee is laying off 170 employees due to government regulations.
- The ban impacts 30% of the workforce at the company.
- Financial support and health benefits will continue for those laid off.
- The new law is projected to severely affect the $3.8 billion gaming industry.
- Potential job losses could reach 200,000 across the sector.
New Delhi, Sep 11 (NationPress) The online gaming firm Zupee revealed on Thursday its decision to terminate the employment of 170 individuals, which constitutes nearly 30 percent of its total workforce. This move comes in response to the government sanctioning a Bill that prohibits online games requiring monetary contributions in August.
Zupee now finds itself alongside other real-money gaming (RMG) entities such as Games24x7, Baazi Games, and Mobile Premier League, all of which have also let go of staff after the ban.
“This was a challenging decision for us, but it was essential to align with the new regulatory landscape. Our departing colleagues have played a vital role in Zupee’s journey, and we are grateful for their contributions,” stated Dilsher Singh Malhi, the founder and CEO of Zupee.
The Gurugram-based company announced that in addition to compensation for the notice period, it will provide “extra financial assistance based on years of service” to the 170 employees.
Health and insurance benefits will remain in effect for the entire duration post-departure of affected employees.
“Moreover, we have established a Rs 1 crore medical support fund to ensure additional security, so that no one feels vulnerable while seeking their next opportunity,” the company conveyed in a statement.
Zupee expressed its commitment to prioritizing the rehiring of those laid off when new positions become available.
The recently passed law in August outlawed online money games that compel users to deposit funds with the hope of winning monetary rewards. This regulation is projected to severely affect the nation’s $3.8 billion gaming sector, potentially eliminating around 200,000 jobs, alongside losses of Rs 25,000 crore in foreign investment and Rs 20,000 crore in tax revenue.
The Act enforces a penalty of 3 years imprisonment and fines up to Rs 1 crore for individuals found involved in offering, assisting, or promoting RMG. Additionally, it proposes 2 years of imprisonment or a Rs 50 lakh fine for advertising or sponsoring such games and suggests the establishment of a regulator for e-sports, educational platforms, and social games.
Point of View
Companies like Zupee must adapt, often at the cost of their workforce. It remains crucial for stakeholders to engage in dialogue about the future of the gaming sector, balancing regulatory compliance with industry sustainability.
NationPress
11/09/2025
Frequently Asked Questions
Why is Zupee laying off employees?
Zupee is laying off employees due to the recent government ban on online games that require monetary deposits, which significantly impacts its business model.
How many employees is Zupee laying off?
Zupee is laying off 170 employees, which is roughly 30 percent of its workforce.
What support is Zupee providing to laid-off employees?
Zupee is offering payment in lieu of the notice period, additional financial support linked to years of service, and will continue health and insurance benefits for those affected.
What does the new law entail?
The new law prohibits online money games, imposing severe penalties including imprisonment and fines for those involved in RMG activities.
How will this ban affect the gaming industry?
The ban is expected to wipe out approximately 200,000 jobs and lead to significant financial losses in the sector, including Rs 25,000 crore in foreign direct investment.
