Canadian private equity fund Clairvest Group has reported a net loss of C$11.6 million (US$9.1 million) for first quarter of fiscal 2018, courtesy of potential losses in its investment in Indian online rummy company Ace2Three.

In April, the Toronto-based company and its partners acquired a majority stake in Head Infotech, the company that operates the online rummy site, for an estimated US$73.7 million. Clairvest’s portion of the investment reached C$22.9 million (US$17.96 million) in the form of compulsory convertible debentures and common shares.

Ace2Three, however, was shut down for nine days in June after the Indian state of Telangana announced a new ordinance outlawing betting and gambling through the internet. The ordinance covers games such as online matka, sports betting, poker and rummy in the state.

Clairvest said the ordinance resulted in a C$1 (US$0.78) per share of unrealized loss in Ace2Three.