Head Digital Works Private Limited (HDW), the parent entity of A23, has announced the acquisition of Adda52’s holding company, Deltatech Gaming Limited (DGL), in a deal worth INR 491 Cr.
The acquisition will be executed in two phases, with HDW initially securing a 51% stake in DGL before a complete merger that will see DGL hold a 5.7% stake in HDW.
The strategic move is aimed at reinforcing HDW’s footprint in India’s online poker landscape, leveraging Adda52’s established brand presence and its extensive user base of over 4.2 million registered players.
Expanding Market Presence
Founded in 2011, DGL is a subsidiary of Delta Corp Limited and operates gaming platforms like Adda52 and Addagames.
Adda52 is regarded as one of India’s premier poker platforms, making it a valuable addition to HDW’s portfolio.
While HDW has been expanding its gaming offerings, it has also been grappling with regulatory hurdles, particularly the government’s imposition of a 28% Goods and Services Tax (GST) on real money gaming platforms.
In 2023, the Supreme Court declined to grant interim relief to HDW and Games24x7 regarding GST demand notices.
However, in a recent ruling, the Supreme Court temporarily halted GST proceedings against 49 real money gaming companies, offering a brief respite to the industry.
A Booming Indian Gaming Sector
Despite regulatory challenges, India’s gaming industry continues to witness significant growth and consolidation.
Several high-profile acquisitions were completed last year, including Nazara Technologies’ purchase of Fusebox Games, Paper Boat Apps Pvt Ltd (PBA), StarLadder, and Trinity Gaming.
Founded in 2005, HDW has established itself as a leader in skill-based gaming, boasting over 70 million users across platforms such as A23 Rummy, A23 Poker, and Cricket.com.
The company launched its poker platform in October 2024, further solidifying its presence in the competitive online gaming space.
