Gameskraft, one of India’s leading real-money gaming companies, is grappling with mounting challenges. The company has laid off approximately 120 employees as part of a restructuring plan, following a government ban on real-money gaming and a major fraud scandal involving its former CFO.

Layoffs Linked to Government Ban
The Indian government recently passed strict regulations prohibiting games where real money is wagered and winnings are expected. Gameskraft founder Prithvi Singh stated that the layoffs were a difficult decision, necessary due to regulatory changes. He expressed deep respect for the employees who were impacted, acknowledging their contributions to the company’s growth.

CFO Accused of ₹270 Crore Fraud
Compounding the crisis, Gameskraft has accused its former CFO, Ramesh Prabhu, of embezzling over ₹270 crore ($2.7 billion). The company has filed an FIR at Marathahalli police station in Bengaluru. The alleged fraud reportedly took place gradually over five years through illegal siphoning of company funds.

Support for Laid-Off Employees
Gameskraft assured that affected employees would receive severance packages, vacation pay, and group health insurance until March 2026. Employees also have the option to convert their insurance into individual policies.

Sector-Wide Impact
Other major real-money gaming companies are also feeling the pressure. A23 Rummy laid off over 500 employees, while MPL is planning a workforce reduction of about 60%. Gameskraft has already shut down its apps, including Rummy Culture and Pocket52, and is exploring alternative business models.

Future Uncertain
The company warned that if the regulatory and business environment does not improve, further layoffs and structural changes could follow, signaling continued uncertainty for India’s real-money gaming sector.