India’s Gaming Industry Faces Its Biggest Test Yet India’s booming online gaming sector has hit a wall. Just weeks after the Promotion and Regulation of Online Gaming Act,
India’s booming online gaming sector has hit a wall. Just weeks after the Promotion and Regulation of Online Gaming Act, 2025 banned real-money gaming nationwide, one of the industry’s biggest names, Gameskraft, has been forced to pull the plug on its operations.
The Bengaluru-based company announced on Thursday that it is laying off 120 employees as part of a sweeping restructuring exercise. For a firm once hailed as a pioneer of India’s digital gaming revolution, the fall has been sudden—and brutal.
Founded in 2017, Gameskraft grew into one of India’s largest gaming companies, offering everything from card games and casual titles to real-money formats. At its peak, it attracted millions of players across the country.
But the new law has upended the sector. Policymakers argue the ban is essential to protect users from addiction and financial losses. Industry leaders, however, warn the move could push gamers into unregulated offshore platforms, where consumer safety is non-existent.
For Gameskraft, the regulatory changes were impossible to navigate. In an internal note to staff, the company admitted:
“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 layoffs span multiple departments, affecting both core gaming teams and support functions. Employees were told that further structural changes may follow as the company assesses its next steps.
Founder and CEO Prithvi Singh called the decision “one of the most difficult” in Gameskraft’s journey, stressing that it was driven by external factors, not employee performance.
For many in India’s tech ecosystem, this announcement underscores how policy shifts can reshape entire industries overnight.
The layoffs aren’t the only storm Gameskraft is battling. Earlier this month, the company accused its former CFO, Ramesh Prabhu, of siphoning off Rs 270.43 crore over nearly five years.
According to Gameskraft, Prabhu diverted the funds through personal trading in futures and options. The case is now under police investigation, adding another layer of turmoil to an already crisis-hit company.
Despite shutting down operations, Gameskraft has announced a comprehensive support plan for the 120 laid-off employees:
This package is more generous than the industry norm, signaling the company’s attempt to soften the blow for employees caught in the crossfire.
Gameskraft’s collapse raises bigger questions: Is India’s gaming sector headed for a meltdown?
The real-money gaming industry had been one of the fastest-growing parts of India’s digital economy, attracting billions in investment and creating thousands of jobs. With the ban, several companies are now facing existential crises.
What was once seen as a sunrise industry is suddenly staring at a very uncertain future.
For Gameskraft, the path forward is unclear. The company has suspended operations but hinted it may pivot to new business areas where regulation allows.
For India’s gaming sector, much depends on whether policymakers revisit the blanket ban or allow regulated real-money formats under stricter safeguards. Until then, more companies may follow Gameskraft’s path into layoffs or shutdowns.
Gameskraft’s downfall is more than a company story—it’s a wake-up call for the entire Indian gaming ecosystem. A single policy change has wiped out years of growth, billions in potential revenue, and hundreds of jobs.
For the 120 employees now left jobless, the company’s support package will help in the short term. But the bigger picture is clear: without a balanced regulatory framework, India risks losing an entire industry to offshore operators and underground platforms.
The question now is whether India’s lawmakers will see this as a necessary correction—or a costly mistake.
