Gameskraft, one of India’s largest real-money gaming startups, has laid off 120 employees across departments as part of a restructuring drive following the government’s blanket ban on online money games.
Layoffs and Support Package
Impacted employees will receive severance pay, leave encashment, and extended health insurance until March 2026, with an option to convert policies into individual plans. Founder Prithvi Singh said the decision was driven by “external realities” rather than employee performance, promising support for affected staff during the transition.
Scandal and Setback
The restructuring comes as Gameskraft faces a fraud scandal involving former CFO Ramesh Prabhu, accused of siphoning Rs 270 crore over nearly five years. An FIR has been filed at Bengaluru’s Marathahalli police station after the company’s complaint.
Business Impact
Founded in 2017, Gameskraft grew rapidly with platforms such as Rummyculture and Pocket52, both of which were shut down following the ban. Despite the regulatory setback, the company posted FY25 revenues of Rs 3,896 crore, up 12% from Rs 3,475 crore in FY24. However, net profit fell 25% to Rs 706 crore, weighed down by the 28% GST on gaming, higher taxes, and one-time accounting changes.
Industry-Wide Fallout
Gameskraft is not alone. A23 Rummy (Head Digital Works) recently cut 500 jobs, Zupee laid off 170, MPL is shrinking up to 60% of its staff, Baazi Games cut 200 roles, and Games24x7 is reportedly reducing its workforce by 70%. The sector is facing a sharp reset as firms scramble to pivot beyond money gaming models.
Final Take
Gameskraft’s layoffs reflect the broader reckoning for India’s real-money gaming sector, once among the fastest-growing digital entertainment categories. With regulation closing one chapter, startups now face the test of reinventing business models for survival.
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