Gameskraft Lays off 120 Employees Amid Real-Money Gaming Ban, Ex-CFO Fraud

Bengaluru-based real-money gaming firm Gameskraft on Thursday announced the layoff of about 120 employees. The job cuts will affect teams and functions across the company as the RummyCulture app maker deals with the recent central government ban on real-money games.

The announcement also comes as the company grapples with an alleged fraud involving its former CFO, Ramesh Prabhu, who admitted to diverting company funds into personal investments via futures and options (F&O) trading over the last three to four years. He reportedly caused losses of over Rs 250 crore to the company. An FIR has been filed against him.

Gameskraft said the layoffs were in response to "external realities." According to media reports, the company noted that the implications of the Online Gaming Bill, 2025 are "complex, far-reaching and have had an immediate and profound impact on the sector and Gameskraft."

"The current regulatory landscape has forced us to completely stop our business and left us with no choice but to initiate a company-wide restructuring. After careful deliberation, as part of this restructuring, we are letting go of about 120 Krafters across teams and functions — a decision we make with a very heavy heart. As the business continues to evolve in response to external realities, further structural changes may be required," the company said.

Gameskraft had 448 employees as of August 2025, according to Tracxn. The company has said further structural changes may be necessary as the business "continues to evolve in response to external realities".

“This has been one of the most difficult decisions in Gameskraft’s journey. 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," founder Prithvi Singh said.

He added that while the decision was entirely driven by external circumstances and the need to adapt to a new reality, it does not reflect on the talent or dedication of the employees. "Our respect for our people remains unchanged, and we will try our best to support them as they transition into their next chapters."

Earlier this month, Gameskraft reported a 25% drop in net profit to Rs 706 crore in FY25, from Rs 947 crore in FY24, citing higher GST outflows and a one-time accounting adjustment. Revenue, however, rose 13.9% to Rs 4,009 crore during the same period. Despite this, the company has now halted operations of both its apps, RummyCulture and Pocket52.

Gameskraft joins several other real-money gaming firms in announcing large-scale layoffs following the ban. Head Digital Works cut nearly 500 jobs, Zupee laid off 170 employees, MPL is downsizing by up to 80% of its workforce, Baazi Games let go of over 200 employees, and Games24x7 has also reduced its staff.