Hyderabad-based Head Digital Works, the parent company of popular platforms A23 Rummy, A23 Poker, and Cricket.com, has laid off nearly 500 employees—over two-thirds of its workforce—after the Indian government enacted the Promotion and Regulation of Online Gaming Act, 2025.
The legislation imposes a blanket ban on real-money online gaming, dealing a severe blow to the ₹23,440 crore skill gaming industry.
The company announced the layoffs during a company-wide town hall, marking one of the largest workforce reductions in India’s gaming sector to date.
Following the cuts, only around 200 employees remain at Head Digital Works, which was previously considered a leading player in the real-money gaming space with over 70 million registered users.
Head Digital Works CEO Confirms Layoffs, Emphasizes Employee Support
Siddharth Sharma, CEO of Head Digital Works, confirmed the decision and acknowledged the impact on employees.
“Our people have been central to our growth, and it was with careful consideration that we decided to let go of a significant part of our workforce,” Siddharth said.
He added that the company will handle the transition responsibly and offer meaningful severance and support to those affected.
According to Siddharth, more than three-fourths of the impacted employees will receive a minimum of three months’ severance pay, while longer-serving staff will be eligible for six to nine months of compensation, including statutory dues.
Industry-Wide Fallout: Other Gaming Firms Also Cut Jobs
Head Digital Works is not alone in facing the consequences of the new law.
Several other real-money gaming companies have initiated large-scale layoffs in recent weeks:
- Mobile Premier League (MPL) is reportedly downsizing its India team by 60–80%, affecting up to 480 employees.
- Baazi Games, which operates PokerBaazi, has laid off over 200 employees—nearly 45% of its workforce.
- Games24x7, the operator of RummyCircle and My11Circle, has also initiated job cuts, though exact figures remain undisclosed.
The sector-wide disruption reflects the sweeping impact of the ban, which has halted operations, frozen investments, and triggered legal challenges across multiple states.
Legal Pushback and Future Plans
Head Digital Works has filed a petition before the Karnataka High Court challenging the constitutionality of the new law.
The next hearing is scheduled for September 8, 2025. The company remains hopeful that a balanced regulatory framework will emerge through judicial review.
In the meantime, Head Digital Works is exploring alternative business models both within and beyond gaming.
“We are evaluating multiple opportunities to build another business for the future,” Siddharth said, adding that the company remains committed to resilience and innovation.
Canadian private equity firm Clairvest holds the majority ownership in the company and recently expanded its footprint by acquiring Deltatech Gaming, the real-money gaming unit of Delta Corp, for ₹491 crore earlier this year.
Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
