Now, A23 Parent Head Digital Works To Lay Off 500 Employees

Following in the footsteps of MPL, PokerBaazi and Games24x7, online gaming platform A23’s parent Head Digital Works is laying off around 500 employees. 

The company is letting go of nearly two-thirds of its workforce, retaining nearly 200 employees, Storyboard18 reported. Head Digital Works made this announcement during a townhall meeting today. 

In a statement shared with Inc42, Head Digital Works CEO Siddharth Sharma said that the company will provide severance pay to the impacted employees. 

“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. We will ensure that this transition is handled with responsibility, providing meaningful severance and support to those impacted, and we remain grateful for their contributions…,” said Sharma. 

He added that the company is now looking at different business models for its future. “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,” Sharma said. 

This comes as the Promotion and Regulation of Online Gaming Act, 2025, which received President Droupadi Murmu’s assent on August 22, has brought an abrupt end to the company’s real money gaming (RMG) sector.

Head Digital Works has challenged the Act, which has banned RMG, in the Karnataka High Court. 

Founded in 2005, Head Digital Works offered several real money games like A23 Rummy, A23 Poker and Cricket.com and claimed to have more than 70 Mn users. However, it had to discontinue its real money games after the passage of the Online Gaming Bill in the Parliament.

Real Money Gaming Players Bleed

Not just Head Digital Works, the new Act has brought the entire RMG industry to a halt. After shutting down their real money games, startups are pivoting to new models and laying off employees to adjust to the new business reality.

While Mobile Premier League plans to let go of around 60% of its India workforce, Games24x7 has also started reducing its headcount. 

Nazara Technologies-backed Moonshine Technology, which operated PokerBaazi, has also started sacking employees. 

Others like Dream11 parent Dream Sports has shifted its focus to scaling its sports streaming platform FanCode and seeking opportunities in the AI space. WinZO has forayed into the microdrama space and will now offer its real money games in international markets such as the US. 

Note: The story has been edited to add Head Digital Works’ statement.