StartupTalky

Tag: A23

  • 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.

    Quick
    Shots

    •Layoffs announced at a town hall on
    September 5, 2025.

    •Ban on real money gaming (RMG) under
    the Promotion and Regulation of Online Gaming Act, 2025.

    •Employees will receive severance
    packages and transition support.

    •Company exploring new business models
    for future growth despite RMG ban.

  • A23, Games24x7, and Junglee Games sue Tamil Nadu Over New Regulations Pertaining to Real-Money Gaming

    In a case filed in the Madras High Court, skilled gaming businesses Games24x7, Junglee Games, and Head Digital Works (A23) have contested the legitimacy of the Tamil Nadu state’s latest regulations pertaining to the real-money gambling (RMG) sector, which went into effect on February 15.

    In order to prevent state authorities from taking any coercive action against them, these corporations have filed writ petitions to halt the execution of these restrictions and secure an interim injunction. Additionally, the corporations have asked the court to rule that the law is “arbitrary, void, illegal, and unconstitutional” when it comes to online skill games that are played for cash or other stakes.

    The latest setback for an industry already struggling with rising goods and services tax (GST) rates came earlier this month when Tamil Nadu announced a set of state-specific restrictions that imposed time and usage limits on RMG platforms.

    The Tamil Nadu Online Gaming Authority (TNOGA) released the rules as part of the state’s larger initiatives to control the rapidly expanding industry. The authority’s action was expected to spark another legal dispute between the state and RMG platforms, according to many media reports earlier.

    What New Rules State?

    RMG platforms are required to implement “blank hours” between midnight and 5 a.m., which result in the inability to log in during this time frame. In addition, the standards require organisations to allow users to set daily, weekly, and monthly financial limitations and forbid minors from playing real-money games. Platforms could also remind players of their playtime by displaying pop-up warning messages every 30 minutes after they have been playing for more than an hour.

    The phrase “ONLINE GAMING IS ADDICTIVE IN NATURE” should be shown on the login pages of RMG apps, along with other warnings concerning the addictive nature of these games. According to the recommendations, RMG apps should also show the fixed monetary limit and the total amount spent thus far in “reasonably bold letters” whenever players deposit money.

    Other Measures Companies Need to Maintain

    Mandatory Know Your Customer (KYC) verification at account creation is one of the additional steps. A second-layer verification using a One Time Password (OTP) issued to the phone number associated with the Aadhaar number will validate the initial login authentication, which will require KYC verification through Aadhaar.

    TNOGA has adopted a “consultative and inclusive approach in draughting regulations aimed at ensuring user protection,” according to Roland Landers, CEO of the All India Gaming Federation (AIGF), a trade association for the skill gaming sector.

    He added that certain elements, like the blackout time, can have unforeseen repercussions and might encourage consumers to utilise offshore gambling sites, which present serious concerns to consumer safety and have an effect on both national and economic security.

    To make sure the regulations achieve their goals without negatively impacting users or the sector, we are currently concentrating on resolving the implementation issues. AIGF is not currently considering a legal challenge to these regulations. Rather, we are actively collaborating with our members and the authority to support constructive engagement and efficient enforcement,” Landers stated.

    Samsung Seeks TN Govt Help as Striking Workers Disrupt Operations
    Samsung has sought assistance from the Tamil Nadu government as striking employees attempt to disrupt operations, raising concerns over production stability.
    StartupTalkyNitin Konde