Gameskraft Lays Off Over 400 Employees as Part of Organisational Restructuring

As part of an administrative restructuring across many teams and tasks, real-money gambling startup Gameskraft laid off almost 400 people, up from about 120 previously, the company told Moneycontrol. These layoffs occur as the Bengaluru-based business struggles to deal with the effects of the government's recent online gaming law, which outlawed real-money games completely.

Following the Promotion and Regulation of Online Gaming Act, 2025, which caused a major change in the operating environment for real money gaming enterprises, Gameskraft claimed in a statement that the decision was motivated by business continuity considerations. However, sources stated that the company now employs less than 100 people, down from roughly 600, and that the overall number may be higher.

Gameskraft Navigating Through Troubled Waters

Gameskraft, a Bengaluru-based company, revealed in September that it was laying off about 120 workers and that more structural adjustments would be required as the company continues to adapt to changing external conditions. The action is being taken at a time when the company is involved in a fraud case involving Ramesh Prabhu, its former CFO, who is accused of embezzling INR 270.43 crore over almost five years.

Following Gameskraft's allegation, a formal case was made against Prabhu at the Marathahalli police station in Bengaluru, according to a September 16 report from multiple media outlets. The new internet gaming law in India forbids playing online money games in which players deposit money, either directly or indirectly, in the hopes of winning money.

As a result, some businesses, including Gameskraft, had to stop producing their main real-money gaming products and lay off a number of employees. Games24x7, Nazara Technologies-backed Baazi Games (Moonshine Technology), Mobile Premier League (MPL), and Head Digital Works (A23) are among the companies that have let go of staff members. The Supreme Court is now considering the case, with the next hearing set for November 26. Head Digital Works and a few other real-money gaming providers have also contested the law's constitutionality.

Remuneration Plan for Affected Employees

In addition to notice pay as stipulated in their employment agreements, a one-time ex-gratia payout, and up to 45 days of leave encashment based on total compensation, affected employees will receive one month of pay for each completed year of service, up to a three-month ceiling. Employee group health insurance will continue to be in effect until March 2026, or until a person transfers to a different company.

The group insurance plan's term life coverage is set at up to INR 5 crore, or twice the employee's CTC, and it will be in effect till June 30, 2026. Gameskraft additionally offered references, recommendation letters, active job placement aid, and a priority hiring option for upcoming vacancies. According to the corporation, all recoveries pertaining to notice period buyouts, relocation aid, and joining incentives have also been waived.