Games24x7 lays off staff as Supreme Court hears 28% GST case
Mumbai: Games24x7 initiated layoffs over the past few days, coinciding with Supreme Court hearings on the 28% Goods and Services Tax (GST) on online gaming that began Monday.
The company declined to comment on the layoffs or disclose how many people were affected. However, two industry executives aware of the matter estimated that around 180 employees were let go.
As of October 2024, Games24x7 had a workforce of 821 employees, according to Tracxn data. This would imply a reduction of roughly 21.9% of its staff.
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A third senior executive with direct knowledge of the matter, who requested anonymity, said the layoffs were 'necessary, since the company had over-hired to chase a fast stretch of growth over the past two years."
Another person familiar with the matter added that all those laid off were full-time employees. 'The layoff was done to reduce the impact of cost in its fantasy sports division, My11Circle."
My11Circle, Games24x7's fantasy gaming platform, competes with Dream11 and is the title sponsor of this year's Indian
Premier
League (IPL). Both executives cited the IPL sponsorship as a significant cost burden on the company.
Games24x7, which also operates RummyCircle, is backed by Tiger Global Management, The Raine Group, Malabar Investment Advisors, and Das & Co. The company has expanded internationally. In FY23, it reported
₹
1,988 crore in operating revenue—a 70% increase over the previous year—alongside a net loss of
₹
199 crore, 29% lower than its FY22 loss.
The layoffs come at a time of heightened scrutiny for the online gaming industry. On Monday, the government told the Supreme Court it would not distinguish between games of skill and games of chance for taxation under GST, and reiterated that the 28% levy should apply to the total entry amount in online games.
This tax policy, first imposed in 2023, has already had a sweeping impact on the sector. That year saw the most significant job losses, as companies reeled from the increased financial burden. Many firms have since instituted hiring freezes, with job postings reportedly dropping by 22% to 60%, particularly for junior to mid-level roles. Some early-stage startups are also struggling to sustain operations, with several seeking consolidation or shutting down entirely.
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In August 2023, MPL laid off around 350 employees—nearly half its workforce—citing a 350–400% increase in tax liability due to the new rules. The product team was particularly affected. Around the same time, Rush Gaming Universe cut 55 jobs, or 25% of its staff, attributing the decision to the GST regime.
The real-money gaming platform Quizy shut down operations altogether. Its founder, Sachin Yadav, cited the revised taxation rates—including the removal of the TDS exemption limit and a flat 30% TDS on all winnings—as key reasons for the closure.
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In November 2023, Mumbai-based game-streaming platform Loco laid off 40 employees, accounting for 36% of its workforce. The company framed this as a strategic restructuring to enhance cost efficiency and support global expansion.
Despite the upheaval, India's online gaming user base continues to grow. According to the FICCI-EY Report 2025, the number of online gamers in the country rose to 488 million in 2024, with projections indicating further growth.
With inputs from Shouvik Das.
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