Another victim of RMG ban: A23 parent lays off 500 employees

Head Digital Works, the parent company of A23 Rummy, A23 Poker and Cricket.com, has laid off about 500 employees in response to India’s new restrictions on online gaming, cutting nearly two-thirds of its workforce.

Storyboard18 first reported the development, noting that the decision was communicated to staff in a company-wide town hall. The firm now retains around 200 employees, with most redeployed to core business teams.

The layoffs follow the enactment of the Promotion and Regulation of Online Gaming Act, 2025, which imposes a blanket ban on real-money gaming (RMG). Head Digital Works last week filed a petition in the Karnataka High Court challenging the law, with the next hearing scheduled for 8 September.

In a statement, chief executive Siddharth Sharma said the decision was taken reluctantly but was unavoidable under the new regulatory environment.

“At Head Digital Works, our people have been central to our growth and it was with careful consideration that we took the decision to let go of a significant part of our workforce,” Sharma said. He added that the firm would provide severance packages and transition support to affected staff.

“While recent regulatory changes necessitated this step, we are confident that a balanced framework will evolve over time, and we remain committed to building a resilient future and exploring new opportunities for the company,” he said.

The company also warned of broader consequences for the industry, estimating that job losses could affect more than 200,000 people and that both domestic and foreign investment in India’s Rs 23,440 crore online skill gaming sector could be at risk.

The real-money gaming ban has already triggered major restructuring across India’s online gaming industry. The Economic Times reported that Bengaluru-based unicorn Mobile Premier League (MPL) cut about 60% of its workforce in India last month, affecting around 300 employees.

Head Digital Works has become one of the most prominent challengers of the new law. Its petition before the Karnataka High Court argues that games of skill such as rummy and poker should not be treated in the same category as gambling. The case will be closely watched, given previous legal precedents in Indian courts distinguishing games of chance from skill-based formats.

A23, one of the company’s flagship platforms, had previously operated with millions of registered users. The platform has also invested heavily in advertising, including sponsorships with high-profile celebrities. The new legislation, however, effectively halts its core revenue model, forcing a rapid reassessment of strategy.