Gaming company Games 24x7 dismisses over a hundred staff members
In a shocking blow, Games 24x7, one of the pioneers in the gaming sector, has let go of more than 100 employees, shrinking its workforce to approximately 800. Here's the lowdown on this surprising turn of events and its potential implications on the real-money gaming landscape in India.
The Bitter Pill: Games 24x7's Massive Layoffs
Multiple reports suggest that the layoffs occurred over several days, affecting various departments within the company. It appears that the terminated employees were offered two to four months' salary as severance, according to some social media accounts. One such account claimed that the let-go employees were given just fifteen days to communicate with their former colleagues. Interestingly, Games 24x7 has major stakes in several real-money gaming ventures, including My11Circle, RummyCircle, and Wowzy.
So, Why the Heavy Culling?
Speculation around the reason for the drastic downsizing is dominant in the industry. Some believe the company over-hired during a previous expansion phase. Furthermore, it seems that even long-time employees have been affected by the layoffs.
The Heat from the GST Court Case
The timing of the layoffs is interesting, as it comes close to the court case on the 28% GST imposed on deposits in the real-money gaming sector. Previously, when the Indian government slapped a 28% GST charge on deposits, several layoffs occurred, and some businesses even shut down their operations. The government and the gaming industry are currently embroiled in a court battle over the matter, with the government contending that the nature of the transaction should attract GST regardless of whether it's a matter of skill or not [1].
The Tumultuous Landscape of Gaming in India
The Indian gaming industry is battling for clarity in the Supreme Court. The government argues that the GST should apply to real-money gaming transactions, while only some states legalize live gaming, and others are considering banning its offline versions. Additionally, the RMG versions of popular online games are absent from the Google Play Store, making mobile downloads challenging [2].
Will the Poker Industry Catch Fire Too?
While the layoffs at Games 24x7 may spark industry-wide concerns, the poker sector in India appears to be thriving. Poker is slowly gaining mainstream acceptance, with media giants like Reliance streaming the Poker Sports League. The Founder Poker Series even featured the founders and CEOs of startups participating in a tournament series. Asian countries such as Vietnam and Malaysia are also serving as burgeoning hubs for poker [3].
Stay Ahead of the Game with Our Newsletter
Subscribe to our newsletter to stay updated on the latest developments surrounding real-money gaming and the poker industry. From tournament schedules to winners lists to exclusive interviews with prominent industry figures, we've got you covered. We also monitor the federal and corporate decisions that might impact the gaming sector. Don't miss out – keep reading with us!
Sources
[1] News18.com (2025, May 8). Layoffs at Games 24x7, Pioneer in Real Money Gaming, Increase Industry Uncertainty. Retrieved from https://www.news18.com/news/business/layoffs-at-games-24x7-pioneer-in-real-money-gaming-increase-industry-uncertainty-4607096.html
[2] Economic Times. (2024, October 15). Real Money Gaming in India: Technology, Policies and the Future. Retrieved from https://economictimes.indiatimes.com/tech/internet/the-real-money-gaming-industry-in-india-technology-policies-and-future/articleshow/83847112.cms
[3] India Today. (2023, June 2). Gaming to Emerge as a Viable Source of Earnings for Tier-II and III Cities in India. Retrieved from https://www.indiatoday.in/technology/games/story/gaming-to-emerge-as-a-viable-source-of-earnings-for-tier-ii-iii-cities-in-india-1958496-2023-06-02
About the Author
Roy D'Silva is a published author with over a decade of diverse experience in journalism. He has written on various topics, including Bollywood, OTT, and now poker. An avid cyclist and documentary enthusiast, Roy aims to be at the forefront of the big story in the poker world.
Technology advancements have been crucial in the growth of the real-money gaming sector, enabling platforms like My11Circle, RummyCircle, and Wowzy to thrive. However, the high-stakes nature of the industry, as shown by Games 24x7's recent layoffs, presents a unique set of challenges. In sports, particularly poker, technology plays a significant role, and the industry's acceptance is slowly growing, even reaching mainstream media and stirring interest in Asian countries like Vietnam and Malaysia.
