Zupee to cut 170 jobs after ban on real-money gaming
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New Delhi: Online gaming platform Zupee on Thursday said it will lay off 170 employees, nearly 30 per cent of its workforce, following the government’s decision to ban online games involving money.
The move comes after the law passed in August that outlawed real-money games requiring deposits for cash rewards, dealing a major blow to the country’s $3.8 billion gaming sector. Companies such as Games24x7, Baazi Games and Mobile Premier League have also cut jobs in response.
“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,” said Dilsher Singh Malhi, founder and CEO of Zupee.
The Gurugram-based company said that in addition to notice-period pay, it will provide extra financial support linked to years of service. Health and insurance benefits will remain valid for their full term, and a Rs 1 crore medical support fund has been set up to assist laid-off employees.
Zupee added that those affected will be given priority for re-hiring if new positions open up.
The new law imposes up to three years in jail and fines of Rs 1 crore on those offering or facilitating real-money games. It also prescribes two years in prison or a fine of up to Rs 50 lakh for promoting or advertising such games, while proposing a separate regulator for e-sports, educational and social gaming platforms.
Industry estimates suggest the ban could result in the loss of nearly 2 lakh jobs, Rs 25,000 crore in foreign investment and Rs 20,000 crore in tax revenues.