Bengaluru-based startup Gameskraft has been hit by one of its toughest challenges. The company has laid off around 120 employees, just weeks after the Indian government imposed a ban on real-money gaming. The decision has sent shockwaves through the gaming industry, which has been growing rapidly in recent years. For Gameskraft, the ban meant an immediate halt to its main source of revenue, forcing the company to restructure and cut costs.
Employees Face Uncertain Future
The government’s new online gaming law has made it illegal to offer games where users bet or stake money. This law was introduced to protect consumers and prevent gambling addiction. But for companies like Gameskraft, which built their platforms around real-money gaming, the change came like a bolt from the blue. Overnight, a large part of their business model became unsustainable. With fewer games to operate and declining revenue, the company had no choice but to let go of staff across multiple departments, including operations, technology, and marketing.
Crisis Inside and Out
As if the regulatory shock was not enough, Gameskraft is also facing serious internal financial issues. Reports suggest that a former top executive mishandled company funds, investing them in risky trades that caused heavy losses. This financial setback came at the worst possible time, leaving the company struggling to balance its books while dealing with the impact of the gaming ban. With both regulatory and financial challenges hitting at once, Gameskraft was left with limited options to stay afloat.
Uncertain Future for Staff
The layoffs have left many employees uncertain about their future. For some, this was their first job in the fast-growing startup world, and now they are suddenly back in the job market. Gameskraft has promised to provide some support to the affected employees, but the reality is difficult. Losing a job is never easy, and with more gaming startups facing similar challenges, competition for new opportunities is likely to rise. The impact goes beyond individuals—it sends a message to the entire industry about how fragile success can be in a fast-changing regulatory environment.
Uncertain Times for Gaming Startups
India’s gaming sector has been one of the fastest-growing digital industries, attracting millions of users and billions in investment. But the new rules have created uncertainty for startups and investors. While regulators believe the ban will reduce gambling risks, critics argue that it may hurt innovation and slow down the growth of a promising sector. Some companies are already planning to pivot to free-to-play or advertising-driven models, but the shift will take time and resources. For players, this may mean changes in how they interact with their favourite platforms, with fewer real-money games and more casual gaming experiences.
Innovation Drives Survival
The case of Gameskraft highlights how quickly fortunes can change in the startup world. In just a few weeks, the company went from rapid growth to mass layoffs. The story is a reminder that regulation can reshape an entire industry overnight. For the Indian gaming sector, the challenge now is to adapt to a new reality. Companies that can innovate beyond real-money gaming may survive and thrive, while others may not make it through. For employees, investors, and founders, the coming months will test resilience and creativity like never before.