India's Online Gaming Sector in Turmoil After Real-Money Ban
India's online games sector is in turmoil following the implementation of the Promotion and Regulation of Online Gaming Act, 2025. The ban on real-money games has led to significant job cuts at prominent startups, including Gameskraft, which has laid off 120 employees. The future of the sector remains uncertain.
Gameskraft, founded in 2017, has been a major player in India's online games scene, offering popular platforms like RummyCulture and LudoCulture. However, the ban on real-money games has forced the company to restructure its business model. The CEO described the layoffs as one of the most difficult decisions in the company's history.
The uncertainty has not spared other large games companies. Dream11 and WinZO are pivoting their business models to stay afloat. The impact is substantial, with thousands of jobs and billions in investments affected. Gameskraft's recent pressures, including the shutdown of its online poker platform Pocket52 and a ₹21,000 crore tax demand, have exacerbated the situation.
Meanwhile, job cuts are not limited to the games sector. In Germany, companies like ZF, SAP, and Bosch are planning significant layoffs, with the German industry overall losing 114,000 positions within a year.
In response to the layoffs, Gameskraft has committed to supporting affected employees. This includes providing health insurance, wellness services, and outplacement assistance. Despite these measures, the future of India's online games ecosystem beyond real-money games remains uncertain, and the industry is facing significant challenges.
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