Head Digital Works, the parent company behind A23 Rummy, A23 Poker, and Cricket.com, has laid off approximately 500 employees, representing over two-thirds of its workforce. The reduction, confirmed during a company-wide meeting, leaves just around 200 employees currently employed at the Hyderabad-based firm. This major downsizing follows India enacting the Promotion and Regulation of Online Gaming Act, 2025, which imposes a blanket ban on real-money online gaming, including skill-based platforms.
CEO Siddharth Sharma addressed the layoffs with a focus on employee welfare. Affected staff will receive at least three months’ severance, while longer-tenured employees are eligible for six to nine months of pay, including statutory dues. The company emphasized that the decision was difficult but necessary amid regulatory uncertainty.
In response to the dramatic regulatory shift, Head Digital Works has filed petitions challenging the new law in the Karnataka High Court, arguing that the ban contravenes constitutional rights and jeopardizes over 200,000 jobs in India’s ₹23,440 crore real-money gaming sector. Storyboard18
Looking ahead, the company is exploring new business opportunities beyond real-money gaming and remains committed to building a viable future in compliance with evolving laws.
Why It Matters
- Massive Workforce Impact: Laying off 500 employees—more than 66% of staff—underscores the deep shockwaves of the real-money gaming ban on the sector.
- Employee-Centric Response: Generous severance packages (3–9 months) show a commitment to mitigating hardship during an unprecedented transition.
- Legal and Economic Fallout: With over 200,000 jobs at risk in the broader industry, this move highlights the economic stakes of sweeping regulatory change.
- Future Strategy: Active litigation and pivot planning indicate Head Digital Works is betting on a comeback once legal clarity returns and alternative business models emerge.
