Zupee cuts about 200 jobs in second layoff after money-gaming ban

Zupee has laid off around 200 employees in its second round of job cuts in less than six months, as the Indian online gaming startup continues to restructure its business following a nationwide ban on real-money gaming.

The latest reductions, announced on Friday, affect multiple teams and form part of what the company described as a limited organisational realignment to adapt to the evolving regulatory and market environment.

In September, Zupee had cut about 170 roles — roughly 30% of its workforce — shortly after Parliament approved legislation prohibiting all real-money gaming platforms.

Zupee said affected employees will receive financial support beyond contractual notice periods, continued health insurance coverage for its full term and access to a Rs 1 crore medical support fund. The company also said impacted staff will be given priority for rehiring as new roles open up.

The layoffs follow the enactment of the Promotion and Regulation of Online Gaming Act, 2025, which imposed a blanket ban on real-money gaming while allowing esports and casual social games to continue. The legislation ended years of regulatory uncertainty over whether such games constituted skill or chance, forcing companies to shut down paid offerings or pivot their business models.

Zupee was among the first major platforms to confirm compliance with the law, announcing in August that it would discontinue all paid games while continuing free-to-play titles such as Ludo Supreme, Ludo Turbo and Snakes & Ladders. Since then, the company has said it is focusing on expanding its free gaming portfolio and has entered short-form video content through Zupee Studio.

Rival WinZO has also expanded into short-form video through the launch of Zo TV, a platform focused on micro-dramas, as its founders contend with regulatory scrutiny from India’s Enforcement Directorate over allegations of unfair gaming practices, which the company has previously disputed.

The regulatory clampdown has triggered widespread disruption across India’s online gaming industry. Dream Sports halted real-money gaming at Dream11, while companies including Gameskraft, Mobile Premier League and Probo have shut down their money-based games. Several firms, such as Games24X7, Head Digital Works and Baazi Games, have also reported workforce reductions.