India’s online gaming ban faces legal challenge

A23 has filed a challenge at Karnataka High Court to contest the new law banning real-money online games.

India.- A23, a gaming platform under Head Digital Works, has filed a legal challenge against the newly enacted Promotion and Regulation of Online Gaming Act, 2025. The Karnataka High Court is set to hear the challenge against the ban on online real-money gaming on August 30.

The new legislation, which received president Droupadi Murmu’s assent on August 22, eliminates the long-standing legal distinction between games of skill and games of chance in India, prohibiting any game with monetary stakes. Penalties include up to three years in prison and fines of up to INR10m (US$114,000), with repeat offenders risking harsher consequences.

The law restricts financial institutions from processing transactions linked to gaming and establishes a national regulatory authority to enforce compliance.

A23 argues that the law unfairly “criminalises the legitimate business of playing online games of skill,” labelling it a “product of state paternalism” and seeking to have it declared unconstitutional for skill-based games. The company, which has over 70 million users, warns that the ban could force gaming companies to shut down.

The government defends the ban citing public health, financial security, and national concerns. Major competitors like Dream11, Mobile Premier League (MPL), Zupee, Pokerbaazi, and Gameskraft have chosen not to challenge the law so far. MPL is shifting focus to free-to-play models.

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A23 has filed a challenge at Karnataka High Court to contest the new law banning real-money online games. India.- A23, a gaming platform under Head Digital Works, has filed a…