Pixel P&L: New India Gaming Law Triggers Mass Layoffs Across Real-Money Platforms

Welcome to another Pixel P&L edition. This issue takes 4 minutes to read. If you only have one, here are the 5 most important things:

• Indian Money Game Companies cut over 500 jobs as India's real-money gaming ban devastates the industry — learn the full impact below.

• Nazara Technologies scraps a major acquisition deal worth $1.9M due to new gaming legislation.

• Free Fire MAX reveals the venue of its first official India esports tournament since 2022.

• NetEase shuts down Austin studio after failing to secure funding for sci-fi multiplayer game.

• One of India’s most environment-friendly live events returns September in Arunachal Pradesh's Ziro Valley

Let's get into it.

Indian Money Gaming Companies Slash Jobs as Real-Money Gaming Ban Takes Effect

India's real-money gaming companies are conducting mass layoffs following new legislation that effectively bans their core business model, with two major platforms cutting hundreds of positions.

Baazi Games, which operates poker platform PokerBaazi under Nazara Technologies-backed Moonshine Technology, is eliminating over 200 jobs (nearly 45% of its workforce) according to Moneycontrol. The cuts may expand as the process continues.

Meanwhile, Mobile Premier League is also reducing its India team by 60-80%, potentially affecting 300-480 of its 500-600 local employees, according to Reuters.

The layoffs stem from India's Promotion and Regulation of Online Gaming Act, passed August 22, which prohibits games where users deposit money expecting winnings. Companies have suspended real-money contests while maintaining free-to-play options.

Nazara Technologies Scraps Deal to Increase Moonshine Stake Amid Gaming Ban

Indian gaming company Nazara Technologies terminated its agreement to acquire an additional stake in Pokerbaazi’s parent Moonshine Technology, citing India's new online gaming legislation that prohibits real-money gaming.

The Mumbai-listed company had planned to purchase a 0.96% stake from I3 Interactive Inc. for ₹15.9 crores ($1.9 million). However, the Promotion and Regulation of Online Gaming Act, 2025, which bans real-money poker and similar games, triggered a material adverse effect clause in the acquisition agreement.

Nazara already holds a 46% stake in Moonshine, the parent company of online poker platform Pokerbaazi, acquired from various sellers including PSM Group and Bellerive Capital.

The decision reflects broader industry upheaval following the gaming ban. Dream Sports, parent of fantasy sports platform Dream11, also warned the legislation would eliminate 95% of group revenue. Companies including DreamSports and Gameskraft have announced Indian market exits.

⚡️Quick Bytes

Free Fire MAX Announces First Official India Esports Event Since 2022

Garena's Free Fire MAX India Cup will hold grand finals at Lucknow's Ekana International Indoor Stadium on September 28, marking the game's first official Indian esports tournament since Delhi banned the original Free Fire app in 2022. Sixteen teams will compete for a share of the ₹80 lakh ($95,000) prize pool, with tickets available soon on BookMyShow.

Ziro Festival Returns to Arunachal Pradesh with Sustainability Focus

The Ziro Festival of Music returns September 25-28 in Arunachal Pradesh's Ziro Valley, featuring artists including Pandit Vishwa Mohan Bhatt and Farhan Akhtar. Tickets range from ₹3,100 for opening day to ₹9,000 for four-day passes. The eco-friendly festival uses bamboo stages and maintains a plastic-free policy in collaboration with the local Apatani community.

NetEase Closes Austin Game Studio Amid Funding Challenges

Chinese gaming giant NetEase shut down Austin-based T-Minus Zero Entertainment after two years, citing market conditions that prevented the studio from securing additional funding. The studio, led by BioWare co-founder Rich Vogel and staffed with veterans from BioWare and Bethesda, was developing a multiplayer sci-fi action game but struggled to attract investors despite completing a playable demo.

⚔️Side Quest

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💡Did You Know

Mario got his name from Nintendo of America's angry landlord! In 1981, when landlord Mario Segale berated Nintendo president Minoru Arakawa in front of employees over overdue rent at their warehouse, the company decided to name their new Donkey Kong character after him. What started as an awkward rent collection became one of gaming's most iconic character names.

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