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First legal test of online gaming ban as A23 moves Karnataka HC

A23 has filed a petition in the Karnataka High Court against India's new law banning money-based online games. The company says the legislation wrongly criminalises skill-based platforms like rummy and poker. The case, set for hearing on August 30, is the first legal challenge to a move that has shaken India's ₹2 lakh crore gaming industry.

A23 drags government to court over India’s real money gaming ban,
A23 drags government to court over India’s real money gaming ban,
| Updated on: Aug 28, 2025 | 04:46 PM

New Delhi: India’s online gaming industry has been thrown into turmoil after the government’s sweeping ban on real money-based games. Platforms like Dream11, MPL, and PokerBaazi pulled down their money contests overnight, leaving players confused and companies staring at massive revenue losses. Now, A23 has become the first to challenge the new law in court, setting up what could become a landmark case for the sector.

According to a Reuters report, the rummy and poker platform has moved the Karnataka High Court arguing that the government’s decision unfairly targets games of skill. The matter will be heard on August 30 after senior advocates C Aryama Sundaram and Dhyan Chinnappa pushed for an urgent listing.

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The law and its impact

The legislation in question is the Promotion and Regulation of Online Gaming Act, 2025, which received presidential assent on August 22. The law makes it illegal to run or offer any form of money-based online game, irrespective of whether it involves chance or skill. For an industry valued at nearly ₹2 lakh crore, the move has landed like a sledgehammer.

Companies such as Dream11, WinZO, Zupee, My11Circle, and PokerBaazi immediately suspended their paid formats. These real-money games formed the core of their revenues. Some executives admitted privately that overnight, their financial models collapsed.

A23’s legal challenge

A23, which has more than 70 million registered players on its platform, told the court that the ban “criminalises the legitimate business of playing online games of skill, which would result in the closure of various gaming companies overnight.” The company described the law as a “product of state paternalism” and asked that it be declared unconstitutional when applied to games like rummy and poker.

If the court agrees to hear the matter in detail, this petition could set the stage for how future disputes between gaming firms and regulators play out in India. It also puts the spotlight on whether the judiciary views rummy and poker as skill-based rather than chance-driven games.

Divided industry response

Not everyone is on the same page. Harsh Jain, CEO of Dream Sports which runs Dream11, said in an interview that 95 percent of their revenues vanished but his firm would not fight the government. His view was that if the authorities “don’t want this right now,” then it isn’t worth a confrontation.

Meanwhile, MPL has also chosen not to approach the courts and instead plans to double down on free-to-play gaming. Industry bodies such as AIGF, EGF, and FIFS have written to Home Minister Amit Shah warning that the ban could trigger job losses, weaken startups, and wipe out investor confidence. They claim the sector generates annual revenues of more than ₹31,000 crore.

What happens next

The Karnataka High Court hearing on August 30 will be closely watched by gaming firms, investors, and players alike. If the court grants A23 interim relief, it may reopen the door for some operations to continue. If not, the industry could face a prolonged freeze on money gaming, changing the way Indians engage with fantasy cricket, poker, rummy, and other popular formats.


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