In a major development shaking the Indian online gaming industry, Zupee announced the layoff of 170 employees, which amounts to nearly 30% of its total workforce. This decision is part of a broader strategic realignment as the company adapts to the newly enacted Promotion and Regulation of Online Gaming Act, 2025, which imposes a complete ban on real-money games across the country.
In this article, we will delve into the reasons behind Zupee’s layoffs, the support offered to impacted employees, and the company’s strategic shift in the wake of new regulations.
Credits: The Economic Times
The Regulatory Storm: Online Gaming Bill 2025
The recently passed Online Gaming Bill, 2025 marks a significant shift in India’s approach to online gaming. The legislation prohibits games that involve real-money stakes, aiming to curb gambling-related risks and protect consumer interests. As a result, platforms offering real-money gaming had no choice but to shut down these offerings almost overnight.
Zupee, which was among the prominent players in the real-money gaming space, had to quickly pivot its business model to survive in the new regulatory environment. This abrupt ban has sent shockwaves across the industry, impacting not only Zupee but several other gaming startups.
A Tough but Necessary Decision
Dilsher Singh Malhi, Founder & CEO of Zupee, expressed the difficulty behind the decision:
“This has been a tough call for us, but was necessary to adapt to the new regulatory framework.”
He further acknowledged the contributions of the affected employees, calling them “an integral part of Zupee’s journey.” The company has committed to providing robust support to help impacted employees transition smoothly to their next opportunities.
Comprehensive Support for Impacted Employees
Understanding the gravity of the situation, Zupee announced a well-rounded support package aimed at financial security, health and well-being, and career transition assistance.
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Financial Support:
Beyond the contractual notice period, the company is offering additional financial assistance linked to employees’ tenure at Zupee. Long-serving employees may receive up to six months of financial aid to ease the transition period. -
Health Coverage:
All affected employees will retain their existing health insurance coverage for the full term, ensuring continued medical security during their job search. -
Medical Support Fund:
Zupee has established a Rs 1 crore medical support fund dedicated to providing additional medical security for employees seeking new roles.
These measures reflect Zupee’s effort to demonstrate empathy and responsibility, even while being forced into difficult restructuring measures.
Looking Beyond Real-Money Gaming
With the real-money gaming model no longer viable, Zupee has announced ambitious plans to pivot its focus toward culturally-rooted social games and other forms of entertainment products. This shift aims to tap into the growing appetite for digital entertainment in India without running afoul of the new regulatory framework.
Zupee’s management remains optimistic about this strategic shift, citing its strong user base of over 150 million registered users as a solid foundation for future growth. The company believes that investing in social gaming and entertainment will help build a more resilient and sustainable business model.
Credits: Moneycontrol
A New Chapter for Zupee
While the layoffs represent a significant challenge, the company’s broader strategy reflects an adaptive mindset. In the words of Dilsher Singh Malhi, Zupee is focused on being “future-ready” in a changing regulatory environment.
As the online gaming ecosystem undergoes significant transformation in India, Zupee’s response demonstrates a pragmatic approach: support employees during the transition while reimagining the business model. The shift toward social, skill-based games rooted in Indian culture could prove to be a smart move in the long term.
The coming months will be crucial for Zupee as it attempts to stabilize operations, win back user engagement, and find new avenues for growth—without the crutch of real-money gaming.
