Real-money gaming company Gameskraft has laid off more than 400 employees, up from around 120 earlier, as part of an organisational restructuring, citing India’s new Promotion and Regulation of Online Gaming Act, 2025 (PROGA) as the main reason. The law, which bans all cash-based online games, has forced several gaming firms to shut down or scale back operations, marking one of the toughest regulatory phases for the country’s gaming industry.
Workforce reduction
Gameskraft confirmed that over 400 employees across departments were impacted during a restructuring exercise aimed at maintaining business continuity under the new regulatory environment.
“As part of the organisational restructuring undertaken, approximately 400+ employees across teams and functions were impacted after careful deliberation. The decision was driven by business continuity considerations following the implementation of the Promotion and Regulation of Online Gaming Act, 2025,” the company said in a statement.
Gameskraft clarified to SiGMA News, “This is not a recent development but part of a previously concluded company-wide restructuring, which was initiated in response to the evolving regulatory and business landscape.”
Profit decline in FY25
The new law and recent tax changes have also affected Gameskraft’s financial performance. The company reported a profit after tax (PAT) of ₹706 crore ($85.06 million) in FY2024-25, down from ₹947 crore ($114.08 million) in the previous year.
According to the company, the profit decline was mainly due to the 28 percent Goods and Services Tax (GST) on player deposits, which was applied to the full fiscal year for the first time. In FY2023-24, only half the year was affected by the new tax rate, implemented in October 2023.
Gameskraft’s revenue stood at ₹4,009 crore ($482.41 million) for FY25. Tax outflows, however, surged to ₹2,526 crore ($303.13 million) from ₹1,512 crore ($182.17 million) in FY24.
The company also recorded a one-time accounting adjustment of ₹231 crore ($27.83 million) linked to alleged financial irregularities. Gameskraft filed a police complaint after its former Chief Financial Officer reportedly siphoned off the same amount.
Impact of the new law
The PROGA 2025 has reshaped India’s online gaming market. The law bans all real-money games, including those based on skill such as rummy and fantasy sports, if they involve any monetary stakes.
Under the Act, offering or promoting online money games is a criminal offence, with penalties including up to three years in prison or fines of up to $1.1 million for operators. Advertisers face up to two years of imprisonment or a $60,000 fine, while banks and payment service providers enabling such transactions may face similar penalties.
The law defines an “online money game” as any digital game where users pay entry fees, deposit money, or place stakes with the expectation of financial returns. Esports and social games are excluded from the ban.
This legislative change has forced Gameskraft to suspend all cash-based operations, particularly on its rummy platforms, and review all related business segments.
Industry faces layoffs and legal challenges
Gameskraft is not alone in facing difficulties. Other real-money gaming firms, including Head Digital Works (A23), Mobile Premier League (MPL), Baazi Games (Moonshine Technology), and Games24x7, have also reduced their workforce or scaled down real-money operations.
Some companies have challenged the constitutional validity of the PROGA, arguing that games of skill should not be treated the same as games of chance. The Supreme Court of India is currently hearing petitions on the issue, with the next hearing scheduled for 26 November.
Industry stakeholders say the law has disrupted a fast-growing sector that once attracted significant investment and employed thousands. The latest layoffs reflect the broader uncertainty now surrounding the future of real-money gaming in India.
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