Gameskraft Reduces Workforce Amid India’s RMG Shake-up

Bengaluru-based online gaming firm Gameskraft Technologies Pvt. Ltd., has initiated a large-scale workforce reduction, as part of a company-wide restructuring to ensure business continuity amidst the wake of the Promotion and Regulation of Online Gaming Act (PROGA 2025) in India. As of Nov. 10, the company laid off more than 400 workers across multiple divisions, marking the most significant employment reduction in the Indian gaming industry.

Earlier, the company announced 120 job cuts as its downsizing effort, which increased significantly and crossed 400 positions with the current effort. The layoff resulted in the disbanding of multiple teams and reduced its workforce to fewer than 100 employees. 

Established in 2017, Gameskraft established its footprint within India’s gaming market with RummyCulture, Gamezy, and Ludo Select. However, the skill-based gaming platform, offering real-money games (RMG), went under structural changes due to the increasing regulatory pressures after the implementation of PROGA.

Industry Context and Gameskraft’s Decision

The implementation of PROGA brought sweeping changes within India’s gaming sector. Along with several operators either stopping operations or switching to free-to-play models, an estimated 2,000+ job cuts are already in effect. Dream 11, one of GamesKraft’s competing companies, has planned for a global expansion to secure the company due to governance concerns.

PROGA prohibits online games where users pay a deposit or wager money expecting winnings. GamesKraft said in a statement, the act “triggered a fundamental shift in the operating environment for real money gaming companies.”

Along with it, the company attributed internal governance problems as another reason for the mass layoff. The company recorded a write-off of about Rs. 270 crore (~$30.4M) linked to alleged unauthorized trades by its former CFO Ramesh Prabhu. Despite the large-scale restructuring, the company aims to compensate its former employees, noting it as an empathy-led transition.

The company said that affected staff would receive one month’s salary per completed year of service (capped at three months), notice pay, and leave encashment up to 45 days of total calculated salary. Female employees on maternity leave received an extra six months' pay. Additionally, GamesKraft waived recoveries related to joining bonus, relocation pay, and notice period buyouts. 

Employee group health insurance coverage will be in effect until March 2026, or until new employment in a different company. Life insurance coverage under the group insurance plan is set at up to two times the employee’s CTC or will be capped at Rs. 5 crore ($5,63,492.5) and will remain valid until June 2026. The company also offered job-placement support, referrals, and promised a priority rehiring for future roles.

Gameskraft’s workforce reduction reflects the stark reality of undergoing transformation in the gaming sector, underscoring the vulnerability of RMG business models. The shift is also reflected in app-download trends. Following legislation, user participation on RMG-style services has sharply declined, reflecting the increasing structural risk for such companies.

Companies such as Head Digital Works (A23), Mobile Premier League (MPL), Games24x7, and Baazi Games (Moonshine Technology), supported by Nazara Technologies, have significantly reduced their India staff, marking a wide shift in India’s online gaming sector.