Digital company A23 Parent is planning to dismiss around 500 of its workforce

The Promotion and Regulation of Online Gaming Act, 2025, which received President Droupadi Murmu's assent on August 22, has brought significant changes to India's digital gaming industry. The Act, which bans the real money gaming (RMG) sector, has led to a series of developments across various companies.

One of the most affected sectors is the RMG industry, with several companies halting operations and laying off employees. The new Act has brought the entire sector to a standstill, forcing startups to pivot to new models and making tough decisions regarding their workforce.

Among the companies affected by the Act is Head Digital Works, a company founded in 2005 and known for offering popular RMG games like A23 Rummy, A23 Poker, and Cricket.com. Prior to the Act, Head Digital Works claimed to have more than 70 Mn users. In response to the new regulations, the company has temporarily withdrawn its companies from the RMG market in India and has challenged the Act in the Karnataka High Court.

Head Digital Works is not the only company facing challenges. Other RMG giants, such as Games24x7 and Nazara Technologies-backed Moonshine Technology, which operated PokerBaazi, have also started reducing their headcount and sacking employees.

In a bid to adapt to the new regulations, some companies are exploring new business models. Head Digital Works, for instance, is looking for ways to continue developing while remaining compliant with the new laws. However, specific company names and the exact models considered have not been detailed in the available search results.

Meanwhile, some companies are expanding their operations internationally. WinZO, for example, has forayed into the microdrama space and will now offer its real money games in international markets such as the US. Mobile Premier League, another RMG company, plans to let go of around 60% of its India workforce but is looking to grow in other regions.

Dream11 parent Dream Sports, on the other hand, has shifted its focus to scaling its sports streaming platform FanCode and seeking opportunities in the AI space.

The impact of the Act on India's digital gaming industry is far-reaching, and it remains to be seen how companies will adapt and evolve in the coming months. As the industry navigates these challenges, it is clear that innovation and resilience will be key to surviving and thriving in the post-Act landscape.