Gameskraft Lays off 120 Employees Amid Ban and Cfp Fraud Scandal

Gameskraft is one of the biggest real-money gaming companies in India. The company's name has been in the news a lot, with the real money game ban, financial fraud, and now layoffs. All impacting its business numbers. According to ScanX, Gameskraft suffered a 25% loss in its net profit (from ₹947 crore in FY24 to ₹706 crore in FY25). Sure, tough time calls for tough decisions, and now the burden is on 120 employees who got fired. That brings us to some important questions. How is the company dealing with the layoffs? And what does the future of Gameskraft look like with financial loss and a ban? Learn more.

What’s Happening at Gameskraft?

The company laid off 120 employees on Thursday, September 18, 2025. Gameskraft had to because:

Government rules - Online Gaming Bill 2025 (came into effect on August 22, 2025) is the primary reason. Gaming companies right now struggle to make any money, and so does Gameskraft.

• Two of its major platforms (that made huge money for Gameskraft) were shut down:

1. Rummyculture
2. Pocket52

Tax pressure - The government imposed a 28% GST, plus the one-time accounting changes hit the company right in its pocket. 

Major Financial fraud by its CFO - The former Chief Financial Officer (CFO) of Gameskraft, Ramesh Prabhu, stole a whopping ₹270 crore.

• He allegedly faked financial documents to divert the money to his personal account for 5 years. The issue came out when the company was facing major heat from the ban.
• Gameskraft reported the fraud as a loss in their account books.
• And filed an FIR at Marathahalli police station in Bengaluru. 

What About the Employees Who Lost Jobs?

The company is offering:

• Severance pay (it's a payment that is given when an employee loses their job).
• Leave encashment (means pay for all the used leaves).
• An extended group health insurance till March 2026.

Additionally, if the employees want, they can convert the company health plan to an individual policy.

Gameskraft on Layoffs

“This has been one of the most difficult decisions in Gameskraft’s journey. Every single Krafter has played a meaningful role in shaping who we are, and we are deeply grateful for their contributions, passion, and belief in our mission," said, Gameskraft founder Prithvi Singh.

How Is the Company Doing Financially?

• Net profit of the company stands at ₹706 crore. The numbers dropped to 25% in FY25 (compared to ₹947 crore in FY24).
• However, the company's revenue grew 12% to ₹3,896 crore in FY25 (from ₹3,475 crore in FY24). Then, why lay off people, one might think.
• Well, this growth is not enough to compensate for the 28% GST and the ban on its two major platforms.

Industry-Wide Impact

The real money gaming industry in the country is cutting jobs. And the ban is to blame for:

• A23 Rummy (Head Digital Works) has cut 500 jobs.
• Zupee has cut 170 jobs.
• MPL (Mobile Premier League) is cutting 60% of its workforce.
• Baazi Games cut 200 people.
• Games24x7 is reportedly cutting 70% of its employees.