Head Digital Works, the parent company of online gaming platform A23, has laid off 500 employees after India’s ban on real-money gaming severely hit its business.

The layoffs come just weeks after the government announced strict restrictions on online games involving real money, citing concerns over addiction and financial risks. A23, which was one of India’s largest skill-based gaming platforms, has faced declining revenues since the ban.

According to reports, the company had been struggling with rising compliance costs and a sharp fall in player engagement. The job cuts are said to impact employees across multiple departments, including operations, customer support, and marketing.

Industry experts believe the move reflects wider challenges faced by India’s online gaming industry, which has seen major disruptions due to new rules. Several gaming startups are also expected to restructure or shut down in the coming months.

A Head Digital Works spokesperson expressed regret over the decision but said it was “unavoidable” in the current environment. The company added that it would provide support to affected employees through severance packages and career assistance.

Despite the setback, A23 is reportedly exploring ways to pivot its business model toward casual and free-to-play games to stay in the market.

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