Zupee to lay off 170 employees after real-money gaming ban

Online gaming company Zupee said on Thursday it will lay off 170 employees, nearly 30 per cent of its workforce, after the government passed a law banning real-money online games in August. The Gurugram-based platform said the move was unavoidable as it adapts to the new regulatory framework.

"This has been a tough call for us but was necessary to adapt to the new regulatory framework. Our colleagues who are leaving us have been an integral part of Zupee's journey and we will always remain thankful for their contribution," said Dilsher Singh Malhi, founder and chief executive officer of Zupee.

The company said employees will receive payment in lieu of the notice period along with additional financial support linked to their years of service. Health and insurance cover will continue for the full term even after their exit.

Zupee has also set up a Rs 1 crore medical support fund to help affected employees during the transition. It added that laid-off staff would be given priority for re-hiring when new roles open up.

Zupee is the latest real-money gaming (RMG) company to trim its workforce after the ban. Games24x7, Baazi Games and Mobile Premier League have already cut jobs following the new law.

The Promotion and Regulation of Online Gaming Act, 2025, which came into effect in August, bans all online games that involve monetary stakes. The Act imposes up to three years' imprisonment and a fine of Rs 1 crore on those offering, abetting or facilitating such games. For advertising or sponsoring banned games, penalties include up to two years in jail or a fine of Rs 50 lakh.

Industry estimates suggest the ban could wipe out nearly 2 lakh jobs, along with Rs 25,000 crore in foreign direct investment and Rs 20,000 crore in tax revenues. The $3.8 billion gaming industry in India, which had been growing quickly in recent years, have suffered a serious setback as a result of the move. With over 150 million registered users, Zupee said that it will now concentrate on social games and products with an entertainment component. The company has also launched Zupee Studio, a short-form video content platform, as part of its strategy to diversify beyond real-money gaming.