Head Digital Works, the parent company of A23 Rummy, A23 Poker, and Cricket.com, has cut nearly two-thirds of its workforce in the wake of India’s new online gaming restrictions. About 500 employees have been laid off, reducing the company’s headcount to roughly 200, most of whom are now focused on core business operations.
The layoffs were announced during a company-wide town hall, marking one of the largest workforce reductions in India’s gaming sector this year. The move comes after the Promotion and Regulation of Online Gaming Act, 2025, introduced a blanket ban on real-money gaming (RMG) across the country.
The legislation has forced companies reliant on RMG to rapidly downsize or rethink their business models. For Head Digital Works, whose flagship platform A23 boasted millions of registered users and a strong advertising presence, the ban has effectively dismantled its primary revenue stream.
The company has challenged the law in the Karnataka High Court, arguing that games such as rummy and poker should be classified as skill-based rather than gambling. The next hearing is scheduled for 8 September, and the verdict could set a precedent for the entire industry, given past legal distinctions between games of chance and skill.
Industry analysts warn that the impact extends beyond a single company. Bengaluru-based Mobile Premier League (MPL) also cut 60 per cent of its staff last month, highlighting growing instability across the sector.
For employees and companies alike, the new law has introduced sudden uncertainty in what was once one of India’s fastest-growing digital entertainment markets.
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