Gameskraft to Lay Off 120 Employees Amid RMG Ban

As per the news reports, Real-money gaming (RMG) platform Gameskraft has announced the layoff of 120 employees due to the impact of India's RMG ban and a major financial scandal involving its former CFO. The decision comes amid falling profits and legal challenges.

Layoffs Amid Legal and Regulatory Pressures

Gameskraft is cutting 120 jobs across departments in a company-wide restructuring. This tough step comes after the Indian government imposed a blanket ban on real-money gaming, impacting firms where users deposit funds to earn winnings. The situation is further worsened by an internal scandal involving ex-CFO Ramesh Prabhu, who allegedly diverted ₹270.43 crore over nearly 5 years through unauthorised trades.

Impact of RMG Ban Across the Industry

Gameskraft is not alone. Head Digital Works recently laid off 500 employees, while Zupee reduced its staff by 170. Mobile Premier League (MPL) is downsizing 60-80% of its 600-strong team. Baazi Games let go of over 200 workers. The industry is experiencing a significant shake-up following the Online Gaming Bill implementation.

Severance and Employee Support

Laid-off employees will receive severance packages as per their contracts. This includes full leave encashment and continued group health cover till March 2026. Affected staff can also convert group medical policies into individual ones for uninterrupted benefits.

Read More: Zupee to Lay off 170 Employees Following Ban on Real Money Online Games!

Financial Impact on Gameskraft

For FY25, Gameskraft reported a 25% fall in net profit to ₹706 crore due to GST outflows rising from ₹1,512 crore to ₹2,526 crore. ₹231 crore in unauthorised transactions were also adjusted. However, revenue rose 13.9% to ₹4,009 crore from ₹3,521 crore in FY24.

Operational Changes and Platform Closures

In response to the legislation, Gameskraft discontinued its online rummy app Rummyculture and paused poker platform Pocket52 operations. The company confirmed that more structural changes could follow depending on evolving market conditions.

Conclusion

Gameskraft’s layoffs highlight the combined pressure of regulatory changes and internal corporate governance failures. The firm has begun restructuring in a bid to stabilise operations amidst industry-wide disruption and a tarnished financial episode.

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