Gameskraft layoffs cross 400 as Online Cash Gaming ban forces deep restructuring

Online gaming agency Gameskraft Technologies has laid off over 400 staff, accounting for greater than half of its 600-strong workforce, as a part of a sweeping organisational restructuring triggered by regulatory challenges and inner turmoil following an alleged multi-crore fraud by its former chief monetary officer.

The firm confirmed that the layoffs — initially pegged at 120 staff when the method started earlier this 12 months — have now expanded considerably, marking one of the extreme downsizing workout routines in India’s actual cash gaming sector.

“As part of the organisational restructuring undertaken approximately 400+ employees across teams and functions were impacted after careful deliberation,” Gameskraft mentioned in an announcement when requested concerning the improvement by Storyboard18. “The decision was driven by business continuity considerations, following the implementation of the Promotion and Regulation of Online Gaming Act, 2025, which triggered a fundamental shift in the operating environment for real money gaming companies.”

The Bengaluru-based agency, as soon as certainly one of India’s fastest-growing on-line gaming startups, cited the federal government’s regulatory crackdown on actual cash gaming as the first cause for the workforce discount. The new legislation, which bans or closely restricts cash-based video games below the pretext of curbing dependancy and monetary danger, has upended the enterprise fashions of a number of main companies.

Gameskraft — which operates fashionable platforms providing skill-based video games — mentioned the coverage shift made a number of of its core verticals unviable, forcing a evaluate of ongoing initiatives, bills, and group buildings.

Despite the large-scale layoffs, Gameskraft has emphasised that it carried out complete worker help measures, describing the transition as “empathy-led.”

All staff, together with probationers, interns, and contractual workers, acquired three months’ wage upfront, whereas all pending job presents had been honoured. Impacted staff got monetary packages that included a one-time ex-gratia payout, severance pay equal to at least one month’s wage per accomplished 12 months of service (as much as three months), discover pay, and depart encashment for as much as 45 days.

The firm has additionally prolonged group medical insurance coverage till March 2026 and time period life protection as much as twice the worker’s CTC or ₹5 crore till June 2026. Access to psychological well being and wellness programmes stays out there till May 2026, and girls staff on maternity depart have been granted six extra months of paid depart.

In addition, Gameskraft is providing profession transition help, job placement help, reference letters, and a precedence rehire choice for future openings. The firm has waived all recoveries associated to becoming a member of bonuses, relocation prices, and spot interval buyouts.

Gameskraft lodged a police grievance towards Prabhu in September, resulting in an FIR registered by Marathahalli Police below a number of provisions of the Bharatiya Nyaya Sanhita (BNS), together with theft, felony breach of belief, forgery, and falsification of accounts.

Prabhu, 47, a chartered accountant who joined the corporate in 2018, allegedly diverted round ₹231 crore from firm accounts into his private checking account between FY20 and FY25. He purportedly fabricated funding paperwork and manipulated accounting information to disguise the diversions as authentic company transactions.

An inner audit later confirmed a loss exceeding ₹250 crore, after his speculative futures and choices (F&O) trades failed. Prabhu reportedly confessed to the misconduct in an electronic mail to the administration earlier than disappearing from the corporate’s Bengaluru workplace in March 2025. He stays untraceable.

Gameskraft’s FY25 filings present that the corporate reported a 12% enhance in income to ₹3,896 crore, up from ₹3,475 crore in FY24. However, web revenue fell by 25% to ₹706 crore as a result of an distinctive lack of ₹270.43 crore linked to Prabhu’s actions and elevated tax liabilities below the brand new GST regime.