RMG ban effect: Gameskraft layoffs rise to over 400 following companywide restructuring

Layoffs

Real-money gaming company Gameskraft has laid off more than 400 employees, up from around 120 earlier, as part of an organisational restructuring across various teams and functions, the firm told Moneycontrol.

These job cuts come as the Bengaluru-based company continues to grapple with the impact of the government's recent online gaming law that placed a blanket ban on real-money games.

"The decision was driven by business continuity considerations, following the implementation of the Promotion and Regulation of Online Gaming Act, 2025, which triggered a fundamental shift in the operating environment for real money gaming companies," Gameskraft said in a statement.

Sources however told Moneycontrol that the total number could be higher and that the company now has fewer than 100 employees remaining, down from a workforce of about 600.

In September, Bengaluru-based Gameskraft announced layoffs of around 120 employees and stated that further structural changes could be necessary as the business “continues to evolve in response to external realities.”

The move also comes at a time when the firm is embroiled in a fraud scandal involving its former CFO Ramesh Prabhu who has allegedly siphoned off funds amounting to Rs 270.43 crore over nearly five years. An FIR has been filed against Prabhu at Bengaluru's Marathahalli police station, following Gameskraft's complaint, Moneycontrol reported on September 16.

India's new online gaming law prohibits online money games, where a user makes a deposit, directly or indirectly, with the expectation of earning winnings on that deposit.

This led to many companies including Gameskraft to discontinue its core real-money gaming products and undertake a series of layoffs. Among the firms that have laid off employees are Head Digital Works (A23), Mobile Premier League (MPL), Nazara Technologies-backed Baazi Games (Moonshine Technology), and Games24x7.

Head Digital Works and a few other real-money gaming operators have also challenged the constitutional validity of the law, and the Supreme Court is currently hearing the matter, with the next hearing slated for November 26.

Affected employees will receive one month of pay for every completed year of service, capped at three months, along with notice pay as per their employment agreements, a one-time ex-gratia payout, and up to 45 days of leave encashment calculated on total salary.

Employee group health insurance cover will remain active until March 2026, or until an individual joins a new employer. Term life cover under the group insurance plan is set at up to two times the employee’s CTC or Rs 5 crore and will remain valid until June 30, 2026.

In addition, Gameskraft provided active job placement assistance, referrals, and recommendation letters along with a priority hiring option for future openings. The company stated that it has also waived all recoveries related to joining bonuses, relocation assistance, and notice period buyouts.

Gameskraft reported a 25 percent drop in its net profit to Rs 706 crore in FY25, from Rs 947 crore in FY24. This includes exceptional items worth Rs 270.5 crore.

The bootstrapped company, however, had attributed the decline in profit primarily to the full-year impact of the 28 percent Goods and Services Tax regime, which led to tax outflows increasing from Rs 1,512 crore in FY24 to Rs 2,526 crore in FY25. It also cited a one-time accounting adjustment of past unauthorised transactions amounting to about Rs 231 crore.

Gameskraft's revenue grew 13.9 percent to Rs 4,009 crore for FY25, from Rs 3,521 crore in FY24.