Modi govt's new online gaming law faces first legal challenge, A23 moves Karnataka HC

A23, an online gaming company in India, has moved the Karnataka high court, challenging the government's ban on online money-based games. This is the first case against a law that led to the sudden shutdown of popular contests and has thrown the industry's future into doubt, news agency Reuters reported.

Now an Act, the Promotion and Regulation of Online Gaming Bill, 2025, aims to crack down on rising instances of addiction, money laundering, and financial fraud through such applications.

The jolt to real-money online gaming came after Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, which banned all forms of online money games while promoting e-sports and online social games.

Now an Act, after President Droupadi Murmi's nod, it aims to crackdown on rising instances of addiction, money laundering and financial fraud through such applications.

Following the passage of the Bill in Parliament, online gaming platforms, including Dream11, My11Circle, WinZO, Zupee, and Nazara Technologies-backed PokerBaazi, have halted their real-money online gaming offerings.

What A23 said in the court filing

In a court filing at the Karnataka high court, A23, which offers rummy and poker games, said the law “criminalises the legitimate business of playing online games of skill, which would result in the closure of various gaming companies overnight”, Reuters reported.

A23 added in its filing that the new law is a “product of state paternalism” and asks that it be declared unconstitutional when applied to games of skill such as rummy and poker.

The IT ministry did not immediately respond to queries of the news agency.

A23.com describes itself as an online gaming platform with more than 70 million players.

What about other online gaming apps?

Fantasy gaming giants Dream11 and Mobile Premier League, where virtual cricket teams are created based on real players, earning points on runs, wickets and catches, and real-money gaming firm Gameskraft said they will not contest the new online gaming law.

“As a responsible and law-abiding corporate entity, Gameskraft has no intention of pursuing any legal challenge to the legislation. We fully respect the legislative process and remain committed to operating within the framework of the law,” a Gameskraft spokesperson said.

Gameskraft's statement comes a day after Dream Sports co-founder Harsh Jain said in an interview that that the company has no plans to oppose the ban.

“I think the government has made it clear that they don't want this right now. I don't want to live in the past. We want to focus entirely on the future and not fight with the government on something that they don't want,” Moneycontrol quoted Harsh Jain as saying.

Gameskraft said it will now redirect its focus. “We have already initiated structured internal discussions to chart the road ahead. Guided by our core values and full compliance with the new bill, Gameskraft remains committed to constructive dialogue with policymakers and stakeholders, responsible innovation, player protection, and regulatory alignment,” the spokesperson added.

Gameskraft said it has paused ‘Add Cash’ and gameplay services on its rummy apps, including RummyCulture, after the law’s passage on August 22.

Dream Sports CEO Harsh Jain said it will not resort to layoffs despite being hit by the ban.

“95 per cent of Dream11's revenues have disappeared overnight, and 100 per cent of our profits…,” Jain said.

Dream Sports has been a major real-money gaming player in India, but it has to close its money-based games after the government banned all forms of online money games.