The Indian gaming industry has been thrown into turmoil following a wave of regulatory changes, and one of its biggest names, Gameskraft, is now facing one of its toughest moments yet. The company, once considered a rising giant in the real-money gaming sector, has laid off roughly 120 employees in the wake of the Promotion and Regulation of Online Gaming Act, 2025. To make matters worse, Gameskraft is also entangled in internal controversy, with allegations of financial misconduct by its former chief financial officer (CFO) surfacing in recent weeks.
The layoffs mark a significant blow for Gameskraft, which had built its brand on real-money gaming platforms that thrived on fantasy sports, card games, and other skill-based titles. For years, the company benefited from India’s booming mobile gaming market, particularly among younger demographics who embraced digital platforms for entertainment and competition. However, the government’s sweeping new regulations have effectively curtailed real-money gaming activities, citing consumer protection, gambling risks, and concerns about addiction as driving factors.
The Promotion and Regulation of Online Gaming Act, 2025 establishes strict boundaries on what qualifies as permissible online gaming in India. Real-money stakes, previously a gray area for many platforms, are now largely prohibited. Industry analysts argue that the act was inevitable given rising public debate over gambling-like features in gaming. While supporters applaud the move as necessary for safeguarding vulnerable players, critics point out that thousands of jobs and billions in revenue are now at risk.
For Gameskraft, the fallout has been swift. The company confirmed that approximately 120 employees across multiple divisions were laid off earlier this month, with the majority affected in departments tied to real-money operations. Insiders report that the mood within the company has been tense, as employees grapple with both sudden job losses and uncertainty about the firm’s future strategy.
Compounding these struggles are troubling allegations of fraud involving Gameskraft’s former CFO. According to reports, the executive is under investigation for potential financial irregularities tied to the company’s operations. While details remain scarce, the accusations have fueled skepticism about Gameskraft’s internal governance and added further pressure at a time when the company is already reeling. The dual blow of regulatory crackdowns and corporate scandal has created a storm that may take years for the gaming giant to recover from.
Industry experts believe Gameskraft’s next steps will be critical. To survive, the company may need to reinvent itself by pivoting toward non-monetized gaming services, advertising-driven models, or fully skill-based e-sports platforms. However, making such a transition will not be easy, especially in a competitive landscape where international developers and homegrown studios are already vying for dominance in India’s broader gaming ecosystem.
The layoffs have also sparked wider concern in India’s tech sector. As gaming continues to intersect with finance, regulation, and digital entertainment, the Gameskraft case is being closely monitored as a potential bellwether for how other firms may fare. Many believe the government’s stricter oversight will reshape the industry for years to come, forcing companies to rethink their models and adhere to higher standards of transparency.
For now, Gameskraft remains under intense scrutiny. Its future may depend not only on how it adapts to a new regulatory environment but also on whether it can restore trust in its leadership and operations.
