Now, Gameskraft Lays Off 120 Employees

Gameskraft Pauses Operations Of Online Poker Platform Pocket52

SUMMARY

Gameskraft has laid off 120 employees saying that the legislation, which bans real money gaming, left it with “no choice” but to halt operations and restructure

It added that it will extend health insurance for impacted employees until March 2026, continue wellness services until May 2026, and support outplacement efforts

The layoffs add to a string of setbacks for Gameskraft. Earlier, it had paused its poker platform Pocket52 in May 2024 after the GST Council imposed a 28% tax on the full face value of bets

Adding to the long-list of gaming startups which have sacked employees following the passing of the Promotion and Regulation of Online Gaming Act, 2025 in the Parliament, GamesKraft has fired 120 staffers.

The gaming startup said the legislation, which bans real money gaming, left it with “no choice” but to halt operations and restructure.

The startup added that it will extend health insurance for impacted employees until March 2026, continue wellness services until May 2026, and support outplacement efforts.

“This has been one of the most difficult decisions in Gameskraft’s journey… It is with a heavy heart that we part ways with some of our colleagues. While this step is driven entirely by the external environment and the need to adapt to a new reality, it in no way reflects on their talent or dedication. Our respect for our people remains unchanged, and we will try our best to support them as they transition into their next chapters,” said founder and CEO Prithvi Singh in a statement.

The layoffs add to a string of setbacks for Gameskraft. The startup had paused its poker platform Pocket52 in May 2024 after the GST Council imposed a 28% tax on the full face value of bets.

It also received a tax demand of INR 21,000 Cr from the Directorate General of GST, which remains under litigation after the Supreme Court stayed a Karnataka High Court order in its favour.

Earlier this week, it was reported that Gameskfarft’s former CFO Ramesh Prabhu allegedly siphoned off over INR 250 Cr, forcing a write-off of INR 270 Cr in FY25.

Founded in 2017, Gameskraft ran platforms such as RummyCulture, Playship, RummyPrime and LudoCulture. The new law has forced gaming companies to shut their core businesses, triggering layoffs and uncertainty across the sector.

Games24x7, MPL, Zupee and Pokerbaazi are among the gaming startups which have laid off employees over the past few weeks. These gaming startups, including Dream11, WinZO, MPL, are now pivoting to new business models following the ban on real-money gaming.