Head Digital Works Announces Layoffs Due to New Online Gaming Regulations

Head Digital Works, the parent organisation of A23 Rummy, A23 Poker, and Cricket.com, has terminated around 500 employees, which represents nearly two-thirds of its workforce. The news was first reported by Storyboard18. This decision follows the recent enactment of the Promotion and Regulation of Online Gaming Act, 2025 in India, which enforces a comprehensive ban on real-money online gaming.

Legal Challenges and Future Implications

In the past week, A23 filed a petition with the Karnataka High Court to contest the newly established law, with the next court session scheduled for September 8 at 2:30 PM. Startup Superb has made inquiries to A23 for further information regarding the layoffs.

Company Structure Post-Layoffs

The decision regarding layoffs was communicated during a company-wide town hall meeting, reducing the firm’s workforce to approximately 200 employees, all of whom are now concentrated on essential projects. In light of these changes, Head Digital Works is also exploring new business avenues outside gaming to ensure a sustainable future.

Wider Impact on the Gaming Industry

The company has further warned of a ripple effect on the broader industry, indicating that job losses could impact over 200,000 individuals, alongside potential threats to both foreign and domestic investments in India’s flourishing Rs 23,440 crore online skill gaming sector. Following the ban, additional layoffs are anticipated across platforms engaged in real-money gaming. Recently, Bengaluru-based unicorn MPL faced scrutiny after announcing the reduction of approximately 60% of its workforce in India, equating to about 300 employees.