Online Gaming Bill 2025: Zupee To Lay Off 170 Employees After Ban On Real-Money Gaming

Online gaming company Zupee announced on Thursday that it will lay off 170 employees, about 30 per cent of its workforce, after the government passed a Bill banning online games involving money in August.

Zupee joins other real-money games (RMG) companies like Games24x7, Baazi Games and Mobile Premier League that have sacked employees after the ban.

“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.

Gurugram-based gaming platform said that besides payment in lieu of the notice period, it is offering “additional financial support linked to years of service” to the 170 employees.

Health and insurance benefits from the company will continue for the full term after the affected employees leave the company.

“In addition, we have set up a Rs 1 crore medical support fund to provide extra security, so no one feels unprotected while they explore their next opportunity,” the company said in a statement.

The company informed that it will prioritise re-hiring its laid-off workforce when new roles open up.

The government enacted a law in August that banned online money games that require users to make deposits with the expectation of winning money. The new law, which impacts the country's $3.8 billion gaming industry, was expected to wipe out around 2 lakh jobs, Rs 25,000 crore in foreign direct investment, and Rs 20,000 crore in tax revenues.

The Act imposed 3 years of imprisonment and Rs 1 crore in fines for those found offering, helping, abetting, inciting, or indulging in RMG. Further, the bill proposed two years in prison or a Rs 50 lakh fine for advertising, promoting, or sponsoring such games. Further, it recommended a regulator for e-sports, educational platforms, and social games.

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