Head Digital Works, the parent company of A23 Rummy, A23 Poker and Cricket.com, has cut nearly two-thirds of its workforce following India’s new online gaming restrictions. Around 500 employees have been laid off, reducing the company’s headcount to about 200. Most of the remaining staff are now focused on core business operations.
The layoffs were announced in a company-wide town hall, marking one of the largest workforce reductions in India’s gaming sector this year. The decision comes after the government passed the Promotion and Regulation of Online Gaming Act, 2025, which introduced a blanket ban on real-money gaming (RMG).
The legislation has forced the companies dependent on RMG formats to rapidly downsize or rethink their strategies. For Head Digital Works, whose flagship platform A23 had 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 considered skill-based rather than gambling. The next hearing is scheduled for 8 September. The outcome could set an important precedent for the entire industry, given past legal distinctions made between games of chance and skill.
Industry experts warn that the impact extends beyond a single company. With job losses already mounting, as seen in Bengaluru-based Mobile Premier League (MPL) cutting 60 per cent of its staff last month, the sector faces widespread instability.
For employees and companies alike, the ruling has brought sudden uncertainty to what was once one of the fastest-growing digital entertainment markets in the country.
