Online gaming platform Zupee will lay off 170 employees, or around 30% of its workforce, after India introduced a new law banning real-money games such as Ludo, poker, rummy and fantasy sports.
The Gurugram-based company confirmed the cuts on Thursday, saying the decision was necessary to align with the recently enacted Online Gaming Act. The legislation, passed by Parliament in August, prohibits any online game where users stake money on outcomes.
“This has been a tough call for us, but was necessary to adapt to the new regulatory framework,” founder and chief executive Dilsher Singh Malhi said in a statement, reported Business Standard. “Our colleagues who are leaving us have been an integral part of Zupee’s journey and we will always remain thankful for their contribution in building Zupee into what it is today.”
Zupee said affected employees will receive more than standard notice pay. The company is offering additional financial support linked to years of service, continuing health and insurance coverage for the full term of policies, and has created a ₹1 crore medical support fund “to provide extra security, so no one feels unprotected while they explore their next opportunity.”
The firm added that it would give priority to rehiring former staff as new roles open.
Zupee is the latest major player in India’s real-money gaming sector to cut jobs after the ban. Business Standard reported that Games24x7, Baazi Games and Mobile Premier League (MPL) have also reduced headcount or scaled back operations in recent weeks as companies face the loss of their main revenue streams.
According to Reuters, the ban has forced several leading apps to suspend money-based games entirely, leaving firms scrambling to redesign their product lines.
The company said it will now focus on developing online social games and other entertainment formats that do not involve cash stakes. Zupee claims to have 150 million registered users and had built its business on popular, culturally familiar titles aimed at India’s mobile-first audience.
The scale of the layoffs reflects the financial pressure on firms that had previously relied heavily on real-money gaming. Analysts note that free-to-play and social titles are less lucrative per user, typically depending on advertising, in-app purchases and sponsorships rather than entry fees or prize pools.
A shifting market
The Online Gaming Act is one of the most sweeping interventions in India’s digital economy in recent years. The government has argued that the ban is aimed at protecting consumers, citing concerns over financial losses and addiction. Industry executives, however, have warned of significant job losses and the risk that players may migrate to unregulated platforms.
Before the ban, India’s real-money gaming sector was among the fastest growing globally, attracting investment from venture firms and foreign backers. According to the All India Gaming Federation, the sector had been expected to reach billions of dollars in annual revenue. Those projections have now been thrown into doubt.
For employees, the immediate consequence has been workforce reductions across multiple companies. For investors and entrepreneurs, the focus has shifted to whether platforms can pivot successfully to casual or skill-based formats that meet the new legal standards.