Zupee Lays Off 200 Employees to Cut Costs After Money Gaming Ban Disruption

Gaming platform Zupee has laid off around 200 employees, approximately 40% of its staff, in an attempt to cut costs to cushion the impact of the real money gaming ban, Inc42 reported.

Zupee cofounder and CEO Dilsher Singh Malhi reportedly announced the decision during a company town hall.

The job cuts are the second phase of a larger workforce rationalisation exercise, taking the total number of job cuts at the company to nearly 370, according to Storyboard18.

The current round reportedly comes after an earlier layoff of 170 employees.

Roles Affected & Severance

The recent layoffs have reportedly affected Zupee’s technology and customer support teams, while employees at Zupee Studio, the company’s micro-drama and short-form content vertical, remain unaffected.

The move is part of a broader restructuring aimed at streamlining operations as the company sharpens its focus on select growth areas.

The impacted employees, besides their contractual notice period, will reportedly be offered additional financial support linked to years of service. Zupee will also continue the current health insurance coverage for the affected employees and set up ₹1 Cr medical support fund to provide extra security to the impacted employees.

Layoffs in Money Gaming

The ban on real-money gaming under the Online Gaming Act, 2025 had an immediate and far-reaching impact on employment across the sector. Real-money gaming companies accounted for a significant share of the 37% of Indian startups that carried out layoffs in 2025, according to an Inc42 report.

In total, more than two lakh direct and indirect jobs linked to the real-money gaming ecosystem were reportedly affected by the decision. Several prominent gaming firms, including GamesKraft, Head Digital Works, PokerBaazi, Games24×7, Mobile Premier League, Zupee and Hike, resorted to layoffs as their business models became unviable following the ban.

The disruption followed the passage of the Promotion and Regulation of Online Gaming Bill, commonly referred to as the Online Gaming Act. On August 21, 2025, the Indian Parliament approved the legislation, effectively banning online games played for money, along with related advertising and financial transactions.

The Centre described the Act as a landmark measure aimed at protecting citizens from the risks associated with online money gaming, while promoting and regulating other forms of online games.