India’s online gaming industry has been hit hard after the Promotion and Regulation of Online Gaming Act, 2025 banned all forms of real money gaming (RMG). The latest victim is unicorn Games24x7, which has begun laying off nearly 500 employees—about 70% of its workforce.
This is the second round of job cuts in 2025, following 180 layoffs earlier in May due to revenue losses from the 28% GST imposed on online games in 2023. Once valued at $2.5 Bn, Games24x7 built its success on platforms like RummyCircle and My11Circle, even partnering with the IPL in 2024. But the sudden ban has left its business model in ruins.
It’s not alone, rival MPL is letting go of 60% of its staff, while PokerBaazi’s operator Moonshine Technology has halved its workforce. Startups like Dream11, WinZO, and Zupee are now pivoting toward esports, fintech, AI, and short video platforms to survive.
For India, the move highlights the clash between regulation and innovation, balancing consumer protection with the livelihood of thousands. The collapse of RMG startups raises a bigger question: can India’s gaming ecosystem reinvent itself without real money play?
