Gameskraft lays off 120 amid real-money gaming ban, CFO fraud

Online gaming agency Gameskraft has laid off 120 workers throughout groups because it halted operations following the implementation of the Promotion and Regulation of Online Gaming Act, 2025.

The workforce discount additionally comes as the corporate has filed a police grievance towards its former group CFO, Ramesh Prabhu, who allegedly siphoned funds amounting to Rs 270.4 crore over almost 5 years.

According to the primary info report (FIR) filed at Bengaluru’s Marathahalli police station, Prabhu admitted in an electronic mail on March 5 that he had misused firm funds for private fairness and derivatives buying and selling, resulting in estimated losses of over Rs 250 crore. ET has reviewed a duplicate of the FIR.

The Bengaluru-based firm stated the brand new laws has considerably disrupted the real-money gaming sector, forcing it to restructure operations.

“This has been one of the most difficult decisions in Gameskraft’s journey,’’ said Prithvi Singh, the company’s founder and CEO. “While this step is driven entirely by the external environment and the need to adapt to a new reality, it in no way reflects on the talent or dedication (of the employees),’’ he added.

Impacted employees will continue to receive medical insurance until March 2026, along with wellness services, outplacement support, and priority consideration for future roles.

As the business continues to evolve in response to external realities, it noted that further structural changes may be required, the statement added.

ET reported on September 16 that Gameskraft was planning to lay off most of its 700 employees after October 31, following an advance payout of three months’ salary in June.

Gameskraft joins a growing list of gaming companies that have cut staff in recent weeks amid the fallout of the ban. These include Mobile Premier League (MPL), Head Digital, Games24x7, Zupee, and PokerBaazi.

Following the union cabinet’s decision to clear the new law last month, gaming federations had written to home minister Amit Shah, flagging that up to 2,00,000 jobs could be at risk.

Several other real-money gaming firms have already exited India. Hike, operator of RMG platform Rush, shut down earlier this month. Winzo wound up its RMG business in India last month and entered the US with micro-dramas, while Flutter Entertainment-owned Junglee Games ceased operations on August 25, calling the regulations “disappointing’’.

In an interview with ET on August 26, Dream Sports co-founder and CEO Harsh Jain acknowledged that staff could be affected, but stressed the company’s commitment to retaining talent as long as possible. “We may need some cuts, but talent will be the last thing to go,” Jain had stated.