Delhi NCR-based gaming startup Zupee is laying off around 170 employees, nearly 30% of its workforce, as part of a restructuring exercise following the ban on real money gaming.
"This has been a tough call for us, but it was necessary to adapt to the new regulatory framework," Zupee founder and CEO Dilsher Singh Malhi said in a statement.
The startup has rolled out a support package for the impacted staff, including providing up to six months pay for long-serving employees, extended health insurance, and access to INR 1 Cr medical support fund.
It has also set up a team to find new roles for the outgoing staff in the industry and assured them of priority rehiring for future roles.
The layoffs come days after Inc42 reported that Zupee is adding short video content to its offerings following the ban on its real money games. It has now officially announced the launch of Zupee Studio, a platform for 1-3 minutes mini-episodes across genres such as romance, drama, thriller, and comedy. The feature will be integrated into its existing app and initially rolled out to select Android users before expanding to iOS.
Zupee, backed by Z47, is also exploring the launch of an astrology platform, though the plan remains in its early stages. The startup has turned to new business models after being forced to shut down its real money gaming (RMG) offerings under the new law. Currently, it only offers free-to-play games like Ludo Supreme and Snakes & Ladders Plus.
Bloodbath At Gaming Companies
Zupee's pivot reflects the turmoil across India's gaming industry following the ban on RMG. The Promotion and Regulation of Online Gaming Act, 2025, which received President Droupadi Murmu's assent last month, prohibits all forms of RMG - whether based on skill, chance, or a mix of both.
It also bars advertising of such games, blocks banks from processing transactions related to RMG, and prescribes imprisonment of up to three years and fines of up to INR 3 Cr for violators.
The move has resulted in gaming startups sacking hundreds of employees. Games24X7, PokerBaazi, Head Digital Works, and Mobile Premier League are among the startups that have laid off employees.
Besides, the Act has forced the startups to overhaul their operations. Dream11 parent Dream Sports is scaling its sports streaming platform FanCode and exploring AI, while WinZO has forayed into microdramas and plans to take its RMG offerings overseas.