The company says this is aimed at reducing operational costs and concentrating focus in key strategic areas.
Halting investment into GiG Games will lead to cash savings of approximately €250,000 ($274,712) per month once the full effect is realised, according to the company.
Three employees are retained to maintain the studio until the end of year, while the remaining 22 staff have all received termination packages.
The four existing proprietary casino games will remain with GiG and continue to be offered to both internal and external operators.
GiG began production at its game studio towards the end of 2017 and its first in-house developed casino game launched in October 2018.
Richard Brown, Acting CEO of GiG, said: "The decision to halt in-house content production is a strategic choice to facilitate full focus and resources on becoming the platform of choice for the online gaming industry.
"This forms part of recent strategic initiatives taken to reduce non-marketing related operational costs, together with our commitment to execution and bottom-line earnings."
On 5 September, GiG announced a change of CEO. Former COO Richard Brown was handed the role after Robin Reed vacated the position.
Petter Nylander, Chairman of the Board at GiG, said at the time: “The company now enters into the next phase of its development with different challenges and opportunities and the board has reached the conclusion GiG therefore also needs a different leadership."
The move comes after a difficult Q2 for GiG, which saw the supplier’s revenue fall 16% year-on-year to €31m, with a net loss of €9m, up 152%.
GiG blamed this drop on a "tougher Swedish market."
Revenue for GiG’s main source of income, B2C, fell to €19.6m for the period, a 19% decrease.
