Digital gaming firm Games24X7 has initiated large-scale layoffs, with about 70% of its workforce of nearly 500 employees set to be impacted.
The move follows the government’s recent ban on all forms of money-based online gaming. Games24X7, which employed around 700–750 people, is now cutting a majority of its staff, one company employee confirmed, though the exact number was not disclosed, reported PTI.
Why Games24X7 To Lay Off 70% Employees?
Several companies that were engaged in the real-money gaming business have started laying off the majority of their staff.
The Promotion and Regulation of Online Gaming Act, 2025, passed by Parliament on August 21, bars all forms of online money games while promoting e-sports and other online games. The Act seeks to prohibit advertisements related to online money games and bars banks and financial institutions from transferring funds for any of such games.
Advertising of money games can attract imprisonment up to two years and/or a fine up to Rs 50 lakh. Facilitating financial transactions related to money games can lead to imprisonment for up to three years and/or a fine of up to Rs 1 crore.
Repeat offences attract enhanced penalties, including 3-5 years’ imprisonment and fines up to Rs 2 crore.
How Is Online Gaming Act, 2025 Impacting Gaming Platforms?
Meanwhile, major online money gaming players have complied with the government’s move and voluntarily announced the shutdown of their money-based gaming services.
The challenge for the government, however, remains in checking foreign-based online money gaming and betting platforms.
(With Inputs From PTI)
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