02:48 PM EDT, 08/21/2025 (MT Newswires) -- Clairvest Group ( CVTGF ) on Thursday fell 2.7% as it reported a "material adverse" regulatory development with respect to Head Digital Works, an online "skill-based gaming" platform in India, in which the company and Clairvest Equity Partners V invested in 2017.

Earlier on Thursday, the Parliament of India passed the Promotion and Regulation of Online Gaming Bill 2025, to ban online games which are real money based. The bill has not been signed by the President of India, for it to go into effect yet.

If or when it goes into effect, it would make it illegal for Head Digital Works to conduct its business, all of which is in India, as it develops and operates platforms like A23 Rummy, A23 Poker and Adda52 Poker.

The company said Head Digital Works "intends to pursue all of its legal rights to challenge the validity of the legislation, including seeking injunctive relief while court challenges are in process."

CVG's investment in Head Digital Works represents 9.6% of its book value on a pre-tax, pre-carry basis as at June 30.

Shares of the company were last seen down $2.0 at $73.00 on the Toronto Stock Exchange.

Price: 73.00, Change: -2.00, Percent Change: -2.67