Gameskraft lays off 120 employees

Gameskraft, one of India’s leading real-money gaming companies, has laid off roughly 120 employees following a government ban on all online money gaming. These job cuts are part of a broader restructuring and come amidst a major internal crisis: a Rs 270 crore fraud allegedly orchestrated by its former CFO, Ramesh Prabhu, over five years. The company has filed an FIR, and Prabhu’s actions have intensified operational challenges. Gameskraft is providing severance pay, accrued leave encashment, and group health insurance coverage until March 2026 to departing staff, offering also the option to convert group health policies to individual plans. Founder Prithvi Singh clarified that layoffs were compelled by external changes, not workforce performance, and assured support for ex-employees. Founded in 2017, the company quickly became a major player operating platforms such as Rummyculture and Pocket52, both now discontinued due to new regulations. Financially, Gameskraft saw a 25% drop in net profit in FY25 to Rs 706 crore due to the introduction of 28% GST and other tax changes, but revenue actually grew 12% to Rs 3,896 crore, reflecting robust business fundamentals despite regulatory headwinds. Gameskraft joins a sector-wide wave of layoffs, with A23 Rummy, Zupee, MPL, Baazi Games, and Games24x7 all downsizing significantly in response to new legal realities for online gaming.