Games24x7 Cuts 400 Jobs Following Real Money Gaming Regulations

Games24x7, one of India's leading online gaming companies, laid off 400 employees on September 1, 2025, marking the company's second major workforce reduction this year. The layoffs come as the mobile gaming industry grapples with regulatory challenges surrounding real money gaming (RMG) operations and shifting market dynamics in India's digital entertainment sector.

The Mumbai-based company, known for popular platforms like RummyCircle and My11Circle, cited regulatory pressures and the need to streamline operations as primary drivers behind the workforce reduction. This latest round of layoffs affects approximately 15% of Games24x7's total workforce, following an earlier reduction of 180 employees in March 2025.

Context of the Decision

The layoffs directly stem from increasing restrictions on real money gaming across multiple Indian states. Several state governments have implemented bans or strict regulations on RMG platforms, significantly impacting revenue streams for companies like Games24x7. The regulatory crackdown has forced the company to restructure its business model and reduce operational costs.

Games24x7's decision reflects broader challenges facing India's online gaming industry, where regulatory uncertainty has created an unstable business environment. The company has been forced to exit certain markets and pivot away from high-revenue RMG offerings in favor of more compliant gaming formats.

The workforce reduction also aligns with the company's strategic shift toward skill-based gaming and fantasy sports, which require different operational capabilities and a leaner organizational structure. Management indicated that the layoffs would help the company focus resources on sustainable growth areas while maintaining compliance with evolving regulations.

Impact on Operations

The layoffs primarily affected Games24x7's customer acquisition, marketing, and product development teams. The company's Bengaluru and Mumbai offices saw the largest reductions, with customer support and regional sales teams also experiencing significant cuts.

Engineering and data analytics divisions faced moderate reductions as the company consolidates its technology infrastructure. The fantasy sports division, centered around My11Circle, retained most of its workforce as this segment remains less affected by RMG regulations.

Games24x7 has temporarily suspended hiring for non-critical roles and reduced its office footprint in tier-2 cities where RMG restrictions have been most severe. The company is also scaling back its advertising spend and promotional activities in affected markets.

Company Financial Background

Games24x7 raised $75 million in Series C funding in 2021, achieving a valuation of approximately $2.5 billion. The company has been profitable in previous years, generating significant revenue from its RummyCircle platform, which became one of India's largest online rummy destinations.

However, regulatory challenges have substantially impacted the company's financial performance throughout 2024 and 2025. Revenue from RMG operations declined by an estimated 40% following state-level bans in key markets including Tamil Nadu, Andhra Pradesh, and Telangana.

The company's fantasy sports vertical through My11Circle has shown resilience, but growth has not been sufficient to offset losses from the rummy business. Games24x7 has been exploring international expansion opportunities to diversify its revenue base and reduce dependence on the Indian RMG market.

Industry Outlook

Games24x7's workforce reduction reflects broader trends across India's mobile gaming sector. Competitors including MPL, Dream11, and Paytm First Games have all implemented similar cost-cutting measures in response to regulatory pressures.

The Indian online gaming industry, valued at $2.6 billion in 2022, faces an uncertain future as regulatory frameworks continue evolving. Companies are increasingly focusing on skill-based games and casual gaming formats that face fewer regulatory hurdles.

Industry analysts expect further consolidation in the RMG space, with smaller players likely to exit the market entirely. Established companies like Games24x7 are better positioned to weather the regulatory storm but must continue adapting their business models.

Conclusion

Games24x7's latest layoffs underscore the significant challenges facing India's real money gaming industry amid regulatory uncertainty. While the workforce reduction will help the company reduce costs and maintain financial stability, it also signals a strategic retreat from high-growth RMG segments that previously drove the company's success.

The company's ability to successfully pivot toward compliant gaming formats and expand internationally will determine its long-term viability in an increasingly regulated market environment.