What's Happening?
Games24x7, the Mumbai-based owner of RummyCircle and My11Circle, is set to lay off approximately 70% of its workforce. This decision comes in response to the Promotion and Regulation of Online Gaming Act, 2025, which has effectively shut down the company's core revenue stream. The ban has led to industry-wide retrenchment, with other major operators like Mobile Premier League (MPL) also cutting significant portions of their staff. The act has erased revenue for domestic real-money gaming operators almost overnight, forcing them to pivot towards free-to-play models or other business strategies.
Why It's Important?
The layoffs at Games24x7 highlight the significant impact of regulatory changes on the gaming industry in India. The Promotion and Regulation of Online Gaming Act, 2025, has disrupted the business models of companies reliant on real-money gaming, leading to widespread job losses and strategic shifts. This development could have broader implications for the global gaming industry, as companies may need to reassess their operations in regions with stringent regulations. The move also underscores the challenges faced by businesses in adapting to sudden legal changes, potentially affecting investor confidence and market stability.
What's Next?
As the industry grapples with the new regulations, companies like Games24x7 may explore alternative business models, such as transitioning to free-to-play games or expanding into other entertainment sectors. Legal battles could ensue as affected companies challenge the ban, seeking to restore their revenue streams. The situation may prompt discussions among stakeholders, including policymakers and industry leaders, about the future of online gaming in India and the balance between regulation and innovation.
