Gameskraft Shuts Down Amid New Online Gaming Law

Operations Halted, 120 Jobs Lost

Bengaluru-based Gameskraft has suspended all operations following the Promotion and Regulation of Online Gaming Act, 2025. The company has also laid off around 120 employees as part of a major restructuring. Gameskraft, founded in 2017, had grown into one of India’s largest online gaming platforms with card games, casual titles, and real-money formats.

Law Triggers Industry-Wide Shake-Up

The new Act, passed in August 2025, imposes a blanket ban on all real-money games, including fantasy sports and card games, along with restrictions on advertising and financial transactions. This has forced leading players like Dream11, MPL, WinZO, and Zupee to shut or suspend parts of their business. Industry groups say the law does not distinguish between skill-based and chance-based games, sparking legal challenges and uncertainty.

Former CFO Accused of Fraud

Adding to the company’s troubles, Gameskraft recently filed a complaint against its former CFO, Ramesh Prabhu, accusing him of siphoning off ₹270.43 crore over nearly five years through personal trading in futures and options. The case is now under police investigation.

Blow to Online Gambling Platforms

The Act’s blanket restrictions have also hit poker, rummy, and online casino-style games, which had grown rapidly in India’s grey market. Many platforms that previously operated legally under the “skill-based” exemption are now forced to cease operations or move offshore. Payment gateways and advertisers have pulled back, cutting off revenue streams and limiting user access. Analysts warn that without regulatory clarity, the ban could push gambling-style games underground, making them harder to monitor and increasing risks for players.