India’s online gaming industry is grappling with a significant downturn as leading platforms, including Games24x7 and Mobile Premier League (MPL), announce substantial layoffs following the government’s recent ban on real-money gaming.
Games24x7, the parent company of fantasy sports platform My11Circle, has initiated a second round of layoffs in less than a year, affecting approximately 400 employees, reported Storyboard18. This move comes amid increasing regulatory scrutiny and financial challenges.
In May 2025, the company had already reduced its workforce by around 180 employees, citing over-hiring during the period when the Supreme Court was deliberating the Goods and Services Tax (GST) matter concerning online gaming.
Despite scaling revenues, Games24x7 has been under financial pressure. In FY23, the company posted operating revenue of ₹1,988 crore, up 70% from the previous year. However, it recorded a net loss of ₹199 crore, an improvement from a loss of ₹281 crore in FY22.
Meanwhile, MPL’s parent company, Galactus Funware Technology Pvt. Ltd., has executed one of the largest job cuts in the sector, letting go of nearly 600–700 employees—close to its entire workforce in India. Sources indicate that the layoffs were triggered by the government’s blanket ban on real-money gaming operations.
The sweeping job cuts across two of the country’s most prominent gaming operators underscore the deepening crisis facing India’s real-money gaming sector. With companies reeling from the dual impact of stringent regulations and financial losses, the industry’s focus appears to be shifting toward international markets and free-to-play formats.
In response to the growing concerns, the Ministry of Electronics and Information Technology (MeitY) is set to convene a significant meeting with representatives from online real-money gaming federations and operators.
This marks the first direct engagement with the industry since the passage of the Promotion and Regulation of Online Gaming Act, 2025. The meeting aims to discuss compliance requirements under the new law and address pressing concerns from industry stakeholders.
As legal battles unfold and the government pushes ahead with its regulatory framework, the future of India’s once high-growth online gaming sector hangs in the balance.