NEW DELHI– Online gaming company Zupee will lay off 170 employees, roughly 30 percent of its staff, after India enacted a sweeping ban on online games involving money last month.
The Gurugram-based firm said the decision was unavoidable as it adapts to the new regulatory landscape. “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 founder and CEO Dilsher Singh Malhi.
Zupee joins a growing list of real-money gaming (RMG) companies—including Games24x7, Baazi Games, and Mobile Premier League—that have been forced to downsize following the August ban.
The company said departing employees will receive severance pay in addition to their notice period, with extra financial support tied to years of service. Health and insurance benefits will remain valid for their full term, and Zupee has created a Rs 1 crore medical support fund to provide added security while employees search for new roles.
“We will prioritize re-hiring our laid-off colleagues as new opportunities arise,” the company noted in a statement.
The ban on online money games—defined as those requiring users to deposit funds with the expectation of winning—has sent shockwaves through India’s $3.8 billion gaming industry. Analysts estimate the law could eliminate around 200,000 jobs, reduce foreign direct investment by Rs 25,000 crore, and cost the government Rs 20,000 crore in tax revenue.
Under the new law, individuals found offering or facilitating real-money games face up to three years in prison and fines of up to Rs 1 crore. Those who advertise or promote such games risk two years in prison or fines of up to Rs 50 lakh. The legislation also calls for a new regulator to oversee e-sports, educational gaming, and social platforms. (Source: IANS)
