Zupee Lays Off 170 Employees Following Government Ban on Online Money Games
New Delhi, Sep 11 (TheTrendingPeople.com) – Gurugram-based online gaming platform Zupee announced on Thursday that it will lay off 170 employees, representing approximately 30% of its workforce, following the recent government legislation banning online games involving real money.
The move comes in the wake of the new regulatory framework introduced in August, which prohibits games where users deposit money with the expectation of winning cash prizes. Zupee joins other real-money gaming companies, including Games24x7, Baazi Games, and Mobile Premier League, which have also initiated layoffs in response to the law.
Zupee CEO Comments on Layoffs
Addressing the situation, Dilsher Singh Malhi, founder and CEO of Zupee, said:
“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.”
The company emphasized that the layoffs were a strategic decision aimed at ensuring compliance with the new legislation while providing maximum support to affected employees.
Employee Support and Benefits
Zupee outlined a comprehensive support plan for the 170 affected employees. In addition to payment in lieu of the notice period, the company is offering additional financial support linked to years of service.
Health and insurance benefits will continue for the full term after employees leave the organization.
To further ensure employee security, Zupee has also established a Rs 1 crore medical support fund:
“This fund is designed to provide extra security so no one feels unprotected while they explore their next opportunity,” the company stated.
Zupee has also committed to prioritizing re-hiring laid-off employees once new roles open up, signaling the company’s intent to retain talent for future growth once the regulatory environment stabilizes.
Government Ban and Its Impact on the Gaming Industry
The Indian government’s law, enacted in August, bans online money games (RMG) that require deposits for a chance to win money. Analysts estimate that the law could affect India’s $3.8 billion online gaming industry, potentially wiping out around 2 lakh jobs, Rs 25,000 crore in foreign direct investment, and Rs 20,000 crore in tax revenue.
The new legislation includes stringent provisions:
- Up to 3 years imprisonment and a fine of Rs 1 crore for those offering, aiding, or indulging in RMG.
- Up to 2 years imprisonment or Rs 50 lakh fine for advertising, promoting, or sponsoring such games.
- Establishment of a regulator for e-sports, educational platforms, and social games.
The ban has triggered widespread concern among gaming platforms, prompting companies to restructure operations, suspend certain services, and reduce workforce, including at leading startups like Zupee.
Broader Industry Implications
Industry experts believe the ban will reshape India’s online gaming ecosystem. While social and skill-based games may continue to thrive, the real-money segment faces significant disruption. Companies are expected to pivot towards ad-driven, skill-based, and educational gaming formats to survive the regulatory constraints.
Zupee’s proactive approach, including financial support and future re-hiring initiatives, may set a benchmark for other affected companies in managing employee transitions responsibly.
Final Thoughts – TheTrendingPeople.com
The government’s ban on real-money games has created uncertainty for the Indian gaming sector, affecting thousands of professionals. Zupee’s transparent communication and employee support measures provide a model for companies navigating such regulatory changes. As the industry adapts, the focus may shift to skill-based gaming, esports, and safe online entertainment, ensuring sustainable growth while complying with the law.