In a turbulent turn for India’s online gaming industry, Bengaluru-based Gameskraft Technologies has laid off 120 employees following a series of regulatory setbacks and a high-profile internal fraud case involving its former Chief Financial Officer. Once hailed as one of India’s most profitable gaming startups, Gameskraft now finds itself navigating a storm of legal, financial, and operational challenges.
Regulatory Ban Shakes the Industry
The layoffs come in the wake of the Promotion and Regulation of Online Gaming Act, 2025, which effectively banned real-money gaming across India. This legislation, passed in August, has forced companies like Gameskraft to halt “Add Cash” and “Gameplay” services on popular platforms such as RummyCulture and Pocket52.
The ban, coupled with a steep 28 percent GST on online gaming revenues, has drastically altered the financial landscape. Gameskraft reported a 25 percent drop in net profit, falling from ₹947 crore in FY24 to ₹706 crore in FY25. The company attributed this decline to both the full-year impact of GST and a one-time accounting adjustment related to internal fraud.
₹250 Crore Fraud Rocks Gameskraft
The most shocking revelation came in September 2025, when Gameskraft filed a police complaint against its former CFO, Ramesh Prabhu, for allegedly siphoning off ₹250 crore over a three-year period. According to the FIR, Prabhu confessed via email to diverting company funds into unauthorized futures and options trading. The fraud was uncovered following a forensic audit initiated by the company.
This scandal has not only damaged Gameskraft’s reputation but also raised serious questions about internal governance and financial oversight in India’s gaming sector.
Layoffs and Strategic Pivot
Facing mounting pressure, Gameskraft laid off 120 employees, primarily from its operations and finance departments. While some competitors like Games24x7 and Moonshine Technologies have also resorted to downsizing, Gameskraft initially attempted to avoid layoffs by offering three months’ advance salary to its workforce. However, the scale of disruption eventually forced the company to restructure.
In response, Gameskraft has launched an internal ideathon, inviting employees to pitch new business ideas. The company is now exploring a pivot toward esports and skill-based gaming, hoping to stay afloat in a rapidly evolving regulatory environment.
What This Means for Investors and Traders
The Gameskraft saga underscores the importance of regulatory awareness and risk management in volatile sectors like online gaming. For retail investors and traders navigating such uncertainty, expert guidance is more crucial than ever.
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Looking Ahead
Gameskraft’s future hinges on its ability to rebuild trust, innovate beyond real-money gaming, and comply with India’s evolving legal framework. As the industry recalibrates, stakeholders — from developers to investors — must stay informed and agile.
For those watching the markets, the intersection of tech, regulation, and finance has never been more dynamic. And with trusted partners like Eqwires, navigating this complexity becomes a strategic advantage.
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