The Shockwave
India’s online gaming dream just hit a nightmare. Games24x7, the parent of fantasy sports giant My11Circle, has axed 400 jobs — one of the biggest layoffs in the sector’s history.
Why? Because the government’s real-money gaming ban has ripped the floor out from under the industry, leaving companies scrambling for survival.
From Unicorn Hopes to Layoff Blues
Backed by top investors like Tiger Global, The Raine Group, and Malabar Investment Advisors, Games24x7 was supposed to be India’s big bet on gaming.
But now, instead of chasing growth, it’s cutting costs and pivoting desperately toward free-to-play formats. These games might dodge regulatory fire, but they don’t rake in cash like fantasy sports and poker once did.
Déjà Vu: Second Round of Cuts
This isn’t the first bloodbath. Just last May, Games24x7 slashed 180 jobs when India’s Supreme Court started reviewing the GST tax blow on gaming companies.
Now, less than a year later, another 400 workers are out. That’s nearly 600 jobs gone in under 12 months.
For an industry once hailed as India’s “digital gold rush,” it’s a brutal fall from grace.
Legal Fight or Surrender?
Rival A23 (Head Digital Works) has already launched a legal challenge to the new rules. But Games24x7 hasn’t revealed if it will join the fight or quietly pivot.
Industry insiders say the company has two choices:
- Battle it out in court to keep real-money games alive, or
- Reinvent itself entirely with ad-driven, free-to-play games.
Either way, the clock is ticking.
The Ugly Numbers
Here’s where it gets messy. Games24x7 was growing like wildfire — but burning cash just as fast:
- FY23 revenue: Rs 1,988 crore (up 70% YoY)
- Net loss: Rs 199 crore (better than the Rs 281 crore loss in FY22)
So, yes, growth was strong. But profits? Still out of reach.
And now, with real-money gaming wiped out, the road to profitability looks even longer.
Not Alone in the Pain
Games24x7 isn’t the only casualty. Rival Mobile Premier League (MPL) has reportedly laid off 60% of its India staff after the ban.
The sector that once promised billions is now bleeding jobs at an alarming pace.
The Human Cost
For the 400 employees suddenly unemployed, this isn’t about regulations or revenue charts — it’s about families, livelihoods, and shattered dreams.
Many joined Games24x7 during its rocket-like rise, only to be blindsided by a government decision they had no control over.
What Happens Next?
Experts say Games24x7 will likely:
- Double down on free-to-play models to keep users hooked.
- Look beyond India, entering friendlier global markets.
- Experiment with AI-driven engagement, hoping to reinvent gaming without money stakes.
But whether these moves can replace the glory days of real-money gaming is anyone’s guess.
The Bottom Line
Games24x7’s mass layoffs show one brutal truth: India’s gaming industry is in crisis.
A sector once celebrated as the future of digital entertainment is now reeling under bans, taxes, and uncertainty. For Games24x7, the battle isn’t just about profits anymore — it’s about survival.
The question is chilling: can My11Circle’s parent company reinvent itself, or is this truly game over?
