Real Money Gaming Ban Forces Head Digital Works (A23 Parent) to Lay Off 500 Staff

The parent company of online gaming platform A23, Head Digital Works, is cutting off over 500 workers, following in the footsteps of MPL, PokerBaazi, and Games24x7. According to Storyboard18, the company is keeping about 200 workers while laying off roughly two-thirds of its workforce. This declaration was delivered by Head Digital Works at a town hall meeting on 5 September.

Head Digital Works CEO Siddharth Sharma told media outlets in a statement that the company would give affected employees severance pay. According to Sharma, Head Digital Works’ employees have been essential to the company’s expansion, and the company carefully considered its options before deciding to let go of a sizable portion of its workforce. The business will make sure that this shift is managed responsibly, offering people affected significant support and severance, and the brand will continue to be appreciative of their contributions.

Brand Exploring New Business Model for Future Growth

Sharma stated that the company is now examining several business models for its future while outlining its intentions for future expansion. “We are certain that a balanced framework will develop over time, and we are still dedicated to creating a robust future and investigating new prospects for the business, even though recent legislative developments made this action necessary,” Sharma stated.

The company’s real money gaming (RMG) business has abruptly shut down due to the Promotion and Regulation of Online Gaming Act, 2025, which was signed into law by President Droupadi Murmu on August 22. In the Karnataka High Court, Head Digital Works has contested the act that outlawed RMG.

Head Digital Works, which was founded in 2005, claimed to have over 70 million users and provided a number of real money games, including A23 Rummy, A23 Poker, and Cricket.com. However, following the Online Gaming Bill’s passage in Parliament, it was forced to stop offering real money games.

Industry-Wide Impact: MPL, PokerBaazi, Games24x7, and More

The new act has stopped the RMG business as a whole, not just Head Digital Works. Startups are switching to new models and firing staff in order to adapt to the new business reality after closing their real money games. Games24x7 has begun cutting staff, while Mobile Premier League intends to lay off over 60% of its employees in India.

Moonshine Technology, which ran PokerBaazi and was backed by Nazara Technologies, has also begun firing staff members. Others, such as Dream Sports, the parent company of Dream11, have refocused on growing FanCode, their sports streaming service, and looking for opportunities in the AI market. Now offering its real money games in other countries like the US, WinZO has ventured into the microdrama space.