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Karnataka HC issues notice to Centre on A23’s plea against gaming law

EntrackrEntrackr · 19d ago
Karnataka HC issues notice to Centre on A23’s plea against gaming law
Medial

The Karnataka High Court has stepped into the debate on India’s new Promotion and Regulation of Online Gaming Act, 2025, which bans all forms of online money games, including skill-based games like rummy and poker. The court, led by Justice B M Shyam Prasad, has issued notice to the Union government. It has asked the Centre to file its reply to a petition filed by Head Digital Works, the parent company of A23, which became the first gaming operator to challenge the new law. The petitioners, represented by senior advocates C. Aryama Sundaram and Dhyan Chinappa, argued that the new Act is misleading. Its title suggests “promotion and regulation,” but in effect, it imposes a blanket ban on all money games. They warned the court that the sudden implementation of the law could trigger a “huge backlash” across the country. According to them, the ban could destroy thousands of jobs, disrupt ongoing businesses, and impact a sector that has attracted heavy investment. They requested that the government either delay the notification of the law or at least provide seven days’ advance notice so that affected parties can seek legal remedies. On behalf of the Centre, Solicitor General Tushar Mehta opposed the plea. He argued that once the President has given assent to a bill, notifying it is a constitutional function. The courts, he said, cannot stop this process. However, Mehta also acknowledged that the notification could be issued soon and assured the court that he would seek instructions from the government. The next hearing is scheduled for September 8 at 2:30 PM. The petition by A23’s parent company marked the first major legal challenge to the new law. However, leading players like Dream11, Gameskraft, and MPL have chosen not to contest the legislation in court.

A23-parent Head Digital Works acquires Adda52 for Rs 491 Cr

EntrackrEntrackr · 6m ago
A23-parent Head Digital Works acquires Adda52 for Rs 491 Cr
Medial

A23-parent Head Digital Works acquires Adda52 for Rs 491 Cr Online gaming company Head Digital Works (HDW), the parent company of gaming firm A23, has acquired Deltatech Gaming, the operator of online poker platform Adda52. HDW announced in a press release that the acquisition aims to strengthen its online poker portfolio. The transaction will take place in two phases for a total consideration of Rs 491 crore ($57.5 million). Initially, Head Digital Works will acquire a 51% stake in Deltatech Gaming following the merger. Post-merger, DeltaCorp Limited will retain a 5.7% stake in Head Digital Works. Through this acquisition, HDW aims to leverage Adda52’s expertise and technological capabilities to accelerate its growth in the online gaming market. Launched in 2011, Adda52 offers a poker experience with various game formats, tournaments, and cash games, attracting both casual and professional poker players across India. According to HDW, the acquisition will enhance the gaming experience, drive technological advancements, and cater to evolving user preferences. The company plans to expand its poker business, explore new growth avenues, and build a comprehensive and diversified skill-gaming platform for its customers. A23 claims to have over 75 million registered users across India and operates five games - rummy, fantasy, poker, carrom, and pool. A23’s net revenue stood at Rs 841 crore in FY24, compared to Rs 839 crore in FY23. Despite the flat revenue, controlled expenditures and increased other income helped A23 achieve a 24% rise in net profits to Rs 72 crore in FY24. In November last year, A23 also completed its first-ever employee stock options (ESOP) buyback program worth $3 million.

Gameskraft pauses operations of Pocket52

EntrackrEntrackr · 4m ago
Gameskraft pauses operations of Pocket52
Medial

Gameskraft has announced a strategic pause on its poker platform, Pocket52, as part of a broader plan to reassess and redefine its approach to the poker category in India. According to the company, it aims to deliver a more focused and differentiated experience to players, aligning with its long-term strategic vision for the poker segment. “The ‘Add Cash’ feature on Pocket52 will be discontinued on May 22, 2025, and gameplay will end on May 30, 2025. The platform will remain accessible until July 2025 for withdrawals, ensuring that all existing customer funds are secure and accessible through standard processes,” the company said in a release. Gameskraft has assured that the pause will not impact its employee strength and that all communications regarding withdrawals and further updates will be sent to players. While Gameskraft did not explicitly cite the 28% GST imposed by the government on gaming startups as a reason, it cannot be ruled out as a factor behind the strategic pause. Several startups have faced layoffs and shutdowns since the implementation of the tax. Despite the operational pause, Gameskraft continues to focus on creating innovative digital experiences for players across its gaming portfolio. According to TheKredible, Gameskraft’s revenue from operations grew to Rs 3,475 crore in FY24 from Rs 2,673 crore in FY23. During the period, its profit dropped 10.8% to Rs 947 crore. Besides Pocket52, Gameskraft also runs Rummy Culture, Playship, RummyPrime, Ludo Culture, and Rummy Time.

A23 parent lays off 500 employees following RMG ban: Report

EntrackrEntrackr · 14d ago
A23 parent lays off 500 employees following RMG ban: Report
Medial

Head Digital Works, the parent company of A23 Rummy, A23 Poker, and Cricket.com, has laid off approximately 500 employees, nearly two-thirds of its workforce. The move comes after India enacted the Promotion and Regulation of Online Gaming Act, 2025, which imposes a blanket ban on real-money online gaming. Last week, A23 also filed a petition before the Karnataka High Court challenging the newly enacted law. The next hearing is scheduled for September 8 at 2:30 PM. “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. 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," said Siddharth Sharma, CEO, Head Digital Works. The decision was announced in a company-wide town hall, and the firm now has about 200 employees focused on key teams. Meanwhile, Head Digital Works is evaluating new business opportunities beyond gaming to build a sustainable future. Head Digital Works further highlighted the broader impact on the sector, warning of job losses affecting over 200,000 people and threats to foreign and domestic investments in India’s booming Rs 23,440 crore online skill gaming industry. Following the ban, more layoffs are expected across real-money gaming platforms. Recently, Bengaluru-based unicorn MPL was in the news for cutting about 60% of its staff in India, roughly 300 employees.

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