A23, a leading online gaming platform with over 70 million users, filed a landmark petition in the Karnataka High Court, challenging the Promotion and Regulation of Online Gaming Act, 2025, which bans all real-money online games in India. Enacted on August 22 after receiving President Droupadi Murmu’s assent, the law has halted operations of major platforms like Dream11, My11Circle, WinZO, Zupee, and PokerBaazi, disrupting an industry projected to reach $9.1 billion by 2029.
A23 argues that the legislation, aimed at curbing addiction, money laundering, and financial fraud, unfairly criminalizes legitimate skill-based games such as rummy and poker, threatening the survival of numerous gaming companies.
In its court filing, A23, operated by Head Digital Works, contends that the Act is a “product of state paternalism” and violates constitutional rights by failing to distinguish between games of skill and chance, a distinction previously upheld by courts. The petition, set for a hearing on August 30, warns that the law could force gaming companies to shut down overnight, jeopardizing jobs and investments worth over ₹23,000 crore.
Unlike A23, major players like Dream11 and Gameskraft have chosen not to contest the ban, with Gameskraft pausing its ‘Add Cash’ features and Dream11’s CEO Harsh Jain reporting a 95% revenue loss but focusing on compliance and future free-to-play models.
The outcome of A23’s challenge could set a precedent for India’s booming online gaming sector, which has attracted significant venture capital from firms like Tiger Global and Peak XV Partners. Industry bodies, including the All India Gaming Federation, have highlighted the sector’s ₹2 lakh crore valuation and urged reconsideration of the blanket ban.
As the Karnataka High Court prepares to hear arguments, the case underscores a critical tension between regulatory intent and the economic impact on a rapidly growing industry, with A23’s fight potentially reshaping the future of online gaming in India.
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