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Tag: Online Gaming Companies

  • 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.

  • MPL to Layoff 60% Staff as India’s Ban on Paid Online Games Hits Revenue

    The Mobile Premier League (MPL), one of the largest gaming businesses in India, has announced significant employment layoffs as a result of the country’s decision to ban paid online games.

    MPL to Lay Off 60% Staff as India Bans Paid Online Games

    Reuters reports that the Bengaluru-based startup will lay off roughly 300 employees, or 60% of its India workforce, because the new rule eliminates revenue from its primary fantasy and card gaming business. The government imposed a statewide ban on online paid games earlier this month, citing the potential for addiction and monetary losses, especially among young players.

    The action has immediately altered the trajectory of the Indian online gaming market, which was predicted to reach $3.6 billion by 2029. Apps that offered poker, rummy, and fantasy cricket—formats that had become more and more popular in recent years—were forced to close.

    CEO Sai Srinivas’ Email to Employees

    MPL co-founder and CEO Sai Srinivas stated the company had no other option in an email sent to staff on August 31. The company has made the painful decision to drastically reduce the size of its India team. According to the email, 50% of M-League’s revenue came from India, and this shift would imply that the company would not be generating any income from that country going forward.

    Several areas, including marketing, operations, engineering, legal, and finance, will experience job losses. Although he did not provide specifics in his note, Srinivas also stated that MPL will support staff members during the changeover.

    Impact on Fantasy Cricket, Poker, and Rummy

    According to Pitchbook data, MPL, which was supported by Peak XV Partners (formerly Sequoia Capital India), was valued at $2.3 billion in 2021. Due to the restriction, the company’s approximately $100 million in revenue from India from the previous year will no longer exist.

    MPL’s Global Focus After India Exit

    The app has paid gaming operations in the US and Brazil and still offers free-to-play games in Europe. It is anticipated that the company would concentrate on these regions. The industry as a whole is feeling the effects of the prohibition. The $8 billion rival Dream11 has already shut down its fantasy cricket division, and a number of poker and rummy sites have gone down.

    Industry associations contend that skill-based activities like fantasy cricket are not comparable to gambling, which has traditionally been severely regulated in India. Not every player is backing off. As the first to file a lawsuit, gaming company A23 has contested the government’s ruling in court. However, MPL and Dream11 have chosen not to challenge the ruling.

    PokerBaazi to Lay Off 50% Workforce After MPL Job Cuts in Indian Gaming Industry

    After real money gaming (RMG) was outlawed in India, Moonshine Technology, which was supported by Nazara Technologies and ran PokerBaazi, began firing its staff. According to sources who spoke to several media sites, the business has begun to lay off workers, with up to 50% of its personnel potentially affected.

    According to a different Storyboard18 article, 200 workers were let go by the company that created PokerBaazi. Moonshine Technology is now the second startup to use layoffs as a result of the RMG ban.

    Additionally, the development follows Nazara’s decision to forgo acquiring a further share in Moonshine Technology. Nazara and Moonshine Technology had reached a final agreement for Nazara to purchase a 47.7% share in Moonshine Technology for INR 831.5 Cr through a secondary transaction.

    Quick
    Shots

    •Ban wipes out revenue from MPL’s core
    fantasy cricket, poker, and rummy businesses.

    •India gaming market, once projected
    to reach $3.6B by 2029, faces major disruption.

    •Layoffs across marketing, ops,
    engineering, legal & finance.

    •MPL valued at $2.3B in 2021, with
    ~$100M revenue from India last year—now lost.

  • ED Targets Celebs: Vijay Deverakonda, Prakash Raj Among 27 Booked in Betting App Scam

    Based on a First Information Report (FIR) submitted by the Cyberabad police in Hyderabad, Telangana, the Enforcement Directorate (ED) has opened an investigation against 29 celebrities in relation to a purported betting application fraud.

    Prominent actors Vijay Deverakonda, Rana Daggubati, Manchu Lakshmi, Prakash Raj, Nidhi Agarwal, Ananya Nagalla, and television host Srimukhi are among those named in the case. The ED is presently looking into the digital trail and financial activities connected to the mentioned people. Investigations are still in progress.

    25 people, including Rana Daggubati, Prakash Raj, Manchu Lakshmi, and Nidhi Agarwal, were charged by the Miyapur Police in Cyberabad on March 19 for allegedly endorsing betting applications.

    What FIR States?

    Sections 318(4) and 112, read with Section 49 of the Bharat Nyay Sanhita, Section 4 of the Telangana State Gaming Act (TSGA), and Section 66-D of the Information Technology Act, were the charges against the actors and media influencers, according to the First Information Report (FIR) that a media group sought.

    These clauses address internet deception, unlawful gambling marketing, and fraudulent activities. According to the FIR, Nidhi Agarwal with Jeet Win, Vijay Deverakonda with A23, Manchu Lakshmi with Yolo 247, Praneetha with Fairplay, and Rana Daggubati and Prakash Raj were linked to the promotion of Junglee Rummy.

    According to the accusations, the influencers and actresses used internet pop-up ads to promote these betting sites, possibly inciting people to gamble illegally.

    Responses from Celebs

    In a post on X, Prakash Raj clarified his stance by stating that he had supported a gaming app in 2016 but had pulled out in 2017 after determining it was improper.

    He claimed that since then, he has not advertised any gaming apps and that he would react if the cops came up to him.

    Rana Daggubati, meanwhile, claimed that his support for a skill-based gaming platform expired in 2017 and was limited to areas that were legally allowed. Citing the Supreme Court’s ruling that separates skill-based games from gambling, his legal team made sure that everything was in line.

    ED Tightening Screws on Gaming Apps

    In relation to the marketing of prohibited betting sites like 1xBet, FairPlay, Parimatch, and Lotus365, the ED previously questioned actors Sonu Sood and Urvashi Rautela, as well as former cricket players Harbhajan Singh, Yuvraj Singh, and Suresh Raina, last month.

    A money laundering scheme connected to illicit gaming and betting applications through Kirana outlets was also discovered by the federal government last year.

    According to reports, the owners of the Kirana stores thought they operated under the RBI’s domestic money transfer (DMT) program and were ignorant of their involvement in unlawful gaming.

  • More than 600 Online Gaming Companies Are Found by DGGI in a Tax Evasion Investigation

    Pankaj Chaudhary, the Minister of State (MoS) for Finance, informed the Parliament that the Centre is investigating 642 offshore gaming, betting, and gambling organisations for possible tax fraud. Chaudhary further stated that the finance ministry is collaborating with the electronics and IT ministry (MeitY) to prohibit these websites in a written response submitted to the Lok Sabha.

    “642 offshore companies that offer internet gambling, betting, and money gaming have been found so far for inquiry. According to the guidelines of Section 14A(3) of the IGST Act, 2017, MeitY has been notified to restrict the websites and URLs of the offshore online gaming companies that were discovered to be unresponsive and uncooperative during the investigation, Chaudhary stated. Selvaganapathi TM, a DMK MP, asked the minister if the Centre had any reciprocal agreements with other countries for exchanging information on tax avoidance by such organisations. The MoS Finance said that no such arrangements exist.

    Expanding Nexus of Illegal Betting Platforms

    The CEO of the industry group All India Gaming Federation (AIGF), Roland Landers, stated earlier this year that offshore unlawful betting platforms cost the national exchequer a staggering $2.5 billion in goods and services tax (GST) income annually. The current regulations mandate that all offshore online gaming businesses operating in the nation, regardless of whether they provide skill-based or chance-based games, establish a subsidiary in India or designate a representative to pay taxes on money received from clients. For real money gaming, all gaming platforms in the nation are required to pay a 28% GST on the full face value of bets.

    28% GST Regime

    Last year on October 1st, the 28% GST regime went into force. Many stakeholders and industry participants argued that the new regulation will negatively affect the domestic online gaming market and called for its reversal. The Centre, however, remained steadfast. Online gaming companies’ collections increased 412% year over year (YoY) to INR 6,909 Cr in the six months following the new regime’s implementation (October 2023 to March 2024).

    The Central Board of Indirect Taxes & Customs, Department of Revenue, Ministry of Finance, is home to the former Directorate General of Central Excise Intelligence (DGCEI), now known as the Directorate General of GST Intelligence (DGGI). This top intelligence agency is tasked with gathering, compiling, and disseminating information about the evasion of the Goods and Services Tax (GST), which was implemented on July 1, 2017, and the duties of the Central Excise and Service Tax throughout India.

    The Directorate General has a variety of responsibilities when it comes to combating the threat of duty avoidance. Through its nationwide intelligence network, it gathers intelligence, particularly in emerging areas of tax evasion, and disseminates it by sending out Modus Operandi Circulars and Alert Circulars to advise field formations of the most recent developments in duty avoidance. When it is deemed essential, this Directorate General conducts operations to uncover GST, Central Excise Duty, and Service Tax evasion, either alone or in coordination with field forces.

    CCI Approves KKR’s Investment in Rebel Foods
    The CCI has approved US-based KKR’s proposal to acquire a share in Rebel Foods, paving the way for a significant investment in the food tech company.
    StartupTalkyNitin Konde