Gameskraft hit by new gaming law, lays off 120 employees

India’s gaming sector is reeling from the impact of the Promotion and Regulation of Online Gaming Act, 2025, with Bengaluru-based Gameskraft becoming the latest casualty. The company on Thursday confirmed that it has halted operations entirely and begun laying off staff as part of a sweeping restructuring exercise.

The move comes just weeks after Parliament cleared the new law that bans online real-money gaming across the country, while permitting and regulating only skill-based and entertainment gaming formats.

The legislation was brought in amid concerns over addiction, financial losses, and the need for consumer safeguards in a fast-growing but controversial industry.

Gameskraft Announces Job Cuts

In a note to employees, the company said the regulatory framework had left it with no alternative but to restructure. "Despite our best efforts, the current regulatory landscape has made us completely stop our business and has left us with no choice but to initiate a company-wide restructuring," the statement read.

As part of the process, Gameskraft will let go of about 120 employees, or 'Krafters', across teams and functions. The company also warned that further structural changes may follow as it adapts to "external realities."

Calling the decision "one of the most difficult" in the company’s journey, Founder & CEO Prithvi Singh added: "Every single Krafter has played a meaningful role in shaping who we are, and we are deeply grateful for their contributions, passion, and belief in our mission. 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 their talent or dedication."

Support for Affected Employees

Despite the layoffs, Gameskraft said it would continue to stand by impacted employees. Measures announced include:

• Medical Insurance Extension: Health insurance will remain active until March 2026, or until the employee secures new employment. Employees with dependent parents’ coverage will also see continuity.


• Wellness Access: Health check-ups and wellness services via the Visit App will continue until May 2026.


• Priority Re-Hiring: Affected staff will be given first preference for new roles if the company pivots into fresh areas.


• Outplacement Support: HR and managers will assist with external opportunities, referrals, and recommendation letters.

Industry at a Crossroads

Gameskraft’s restructuring highlights the deep uncertainty facing India’s real-money gaming industry. The sector had attracted significant investment in recent years, but the new law has forced many companies to pause, shut down, or explore pivots to permissible gaming formats.

While policymakers argue the ban protects consumers from risks associated with wagering and speculative play, industry leaders warn it could stifle innovation and push users towards unregulated offshore platforms.

For now, Gameskraft says its focus is on building a sustainable and innovation-first organisation for the future, though the path forward remains unclear. "The road ahead will demand tough decisions, but our commitment remains rooted in transparency and responsible leadership," Singh emphasised.

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