NewKerala.com

Key Points

Zupee has announced it's letting go of 170 employees following India's recent ban on real-money gaming. The company's CEO called it a tough but necessary decision to adapt to new regulations. Affected staff will receive severance packages and continued health benefits. This move reflects the broader impact of the gaming ban that threatens thousands of jobs across the industry.

Key Points: Zupee Lays Off 170 Employees After Real Money Gaming Ban

  • Zupee lays off 170 employees representing 30% of its total workforce
  • Company cites new gaming ban legislation as primary reason for cuts
  • Offers severance, medical fund and re-hiring priority to affected staff
  • New law threatens 2 lakh jobs and Rs 25,000 crore in FDI losses
2 min read

Zupee to lay off 170 employees after ban on real-money gaming

Zupee cuts 30% workforce after India's gaming ban law, joining other RMG companies in mass layoffs while offering severance and re-hiring priority.

"This has been a tough call for us but was necessary to adapt to the new regulatory framework - Dilsher Singh Malhi, Zupee CEO"

New Delhi, Sep 11

Online gaming company Zupee announced on Thursday that it will lay off 170 employees, about 30 per cent of its workforce, after the government passed a Bill banning online games involving money in August.

Zupee joins other real-money games (RMG) companies like Games24x7, Baazi Games and Mobile Premier League that have sacked employees after the ban.

“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 chief executive officer of Zupee.

Gurugram-based gaming platform said that besides payment in lieu of the notice period, it is offering “additional financial support linked to years of service” to the 170 employees.

Health and insurance benefits from the company will continue for the full term after the affected employees leave the company.

“In addition, we have set up a Rs 1 crore medical support fund to provide extra security, so no one feels unprotected while they explore their next opportunity,” the company said in a statement.

The company informed that it will prioritise re-hiring its laid-off workforce when new roles open up.

The government enacted a law in August that banned online money games that require users to make deposits with the expectation of winning money. The new law, which impacts the country's $3.8 billion gaming industry, was expected to wipe out around 2 lakh jobs, Rs 25,000 crore in foreign direct investment, and Rs 20,000 crore in tax revenues.

The Act imposed 3 years of imprisonment and Rs 1 crore in fines for those found offering, helping, abetting, inciting, or indulging in RMG. Further, the bill proposed two years in prison or a Rs 50 lakh fine for advertising, promoting, or sponsoring such games. Further, it recommended a regulator for e-sports, educational platforms, and social games.

- IANS

Share this article:

Reader Comments

P
Priya S
While I understand the need to regulate gambling-like games, the government should have considered the employment impact. 2 lakh jobs at risk is huge! Hope the affected employees find new opportunities soon 🙏
A
Aman W
At least Zupee is handling it responsibly with proper severance and medical support. Many companies just fire people without any support. The 1 crore medical fund shows they care about their employees.
S
Sarah B
The real money gaming industry was becoming a menace in India. So many families were getting destroyed by gambling addiction. The ban might hurt employment temporarily but will save many from financial ruin in long term.
V
Vikram M
This is why we need better policy planning. The government bans something overnight without creating alternative employment opportunities. The gaming industry was generating good revenue and employment for educated youth.
N
Nikhil C
Hope these companies pivot to skill-based gaming without real money involved. The talent and technology is there, just need to adapt to the new regulations. Wishing all the affected employees the best!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50