Indian online gaming operator Head Digital Works (HDW) has announced its acquisition of Deltatech Gaming Ltd (DGL), the parent company of Adda52, in a deal worth ₹491 crore. The transaction will unfold in two phases, beginning with HDW acquiring a 51% stake in Deltatech Gaming, followed by the merger of Deltatech Gaming into HDW’s operations. Once finalized, Delta Corp, Deltatech’s parent company, will retain a 5.7% equity stake in HDW.
The acquisition is expected to solidify HDW’s presence in India’s online skill-gaming sector, combining its expertise in rummy and poker with Adda52’s strong foothold in online poker. “This acquisition brings together two of India’s biggest skill-gaming platforms, aiming to deliver an unparalleled gaming experience and foster innovation in the online poker space,” HDW stated according to Business Standard.
Under the terms of the agreement, Delta Corp will receive an initial 2.8% equity stake in HDW by April 6, 2025, at which point HDW will complete its 51% acquisition of Deltatech Gaming. With this acquisition, Head Digital Works is set to become one of the most influential players in India’s online skill-gaming industry, combining rummy and poker into a single, diversified platform that caters to millions of players across the country.
Expanding India’s Skill-Based Gaming Sector
HDW has been a pioneer in India’s online gaming industry, operating A23 Rummy and A23 Poker, two of the country’s largest real-money gaming platforms. With over 75 million users, A23 Rummy has built a reputation as one of India’s top skill-based gaming brands. In October 2024, HDW launched A23 Poker, strengthening its poker offerings alongside rummy.
For Adda52, the deal presents an opportunity to leverage HDW’s technological expertise and vast player base. “By combining our strengths, we aim to expand our poker business, accelerate growth through new avenues, and create India’s most comprehensive and diversified skill-gaming platform for our customers,” said Deepak Gullapalli, founder and CEO of Head Digital Works.
Delta Corp originally acquired Deltatech Gaming (then known as Gauss Network) in 2016 for an estimated ₹150 crore through a part-cash, part-equity deal. The current transaction enables HDW to integrate Adda52’s poker expertise with its established rummy platform, reinforcing its competitive edge in India’s growing online gaming market.
Delta Corp’s managing director, Ashish Kapadia, emphasized the strategic importance of this deal, stating, “We’re excited for this journey with Deepak and team, whose leadership has been instrumental in shaping the online rummy market in India. We believe that this transaction will help Adda52’s leading position in the online poker market.”
One of India’s Largest Gaming Mergers
The acquisition of Deltatech Gaming by HDW marks the second-largest deal in India’s online poker and rummy gaming segment. In September 2024, Nazara Technologies acquired a 47.7% stake in Moonshine Technology (MTPL), the parent company of PokerBaazi, for ₹832 crore via a secondary transaction, alongside a ₹150 crore investment in primary capital. This ₹982 crore acquisition remains the largest merger in India’s real-money gaming industry.
The Indian skill-gaming sector is experiencing rapid growth, and this transaction is expected to enhance HDW’s presence in the poker market while allowing Adda52 to leverage a larger platform. Industry experts believe that the integration of Adda52 into HDW’s operations will accelerate innovation and establish a more comprehensive gaming experience for Indian players.
Regulatory Considerations and Future Plans
The merger occurs at a time when India’s online gambling landscape is under increased regulatory scrutiny. The Indian government is assessing potential reforms to the oversight of real-money gaming, which could impact taxation and licensing requirements.
HDW has positioned itself as a compliant and responsible operator, and the merger is expected to strengthen its ability to navigate potential regulatory changes. The transaction remains subject to approvals, including a Delta Corp shareholder vote scheduled for March 21, 2025.