A23 challenges Online Gaming Act, Karnataka High Court to take up plea on Aug 30

The Karnataka High Court will hear on August 30 a plea challenging the newly enacted law that bans all forms of online money gaming in the country.

The plea, filed by leading online gaming company A23, was mentioned for urgent hearing on Thursday by senior advocates C Aryama Sundaram and Dhyan Chinnappa, reported Bar and Bench.

The Promotion and Regulation of Online Gaming Act, 2025, which received presidential assent on August 22 after being passed by the Lok Sabha and the Rajya Sabha on August 20 and 21, respectively, outlaws all online money games irrespective of whether they are based on skill or chance.

The law prohibits advertisements for such platforms and bars banks and financial institutions from processing payments related to them. It also provides for the establishment of a new regulator to oversee compliance and categorise permissible games such as e-sports and educational or social games.

India’s online gaming sector went into a tailspin last week, with firms like Dream Sports, Mobile Premier League (MPL), Zupee, Gameskraft and Probo suspending their real-money gaming offerings.

Moneycontrol had earlier reported that Dream Sports, Gameskraft and Head Digital Works were considering legal action.

However, Dream Sports co-founder Harsh Jain ruled out any challenge to the law, saying the company intends to focus on the future rather than contest government policy.

"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," Jain said.

Gameskraft also issued a statement confirming it had ceased real-money services across its Rummy platforms and would not pursue a legal challenge, stressing that it would operate within the legislative framework.

"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… Gameskraft remains committed to constructive dialogue with policymakers and stakeholders, responsible innovation, player protection, and regulatory alignment," a company spokesperson said.

The Act defines online money games as those played by paying a fee, depositing money or other stakes in expectation of winnings, and prescribes strict penalties for violations. Operators could face imprisonment of up to three years or fines of up to ₹1 crore, or both, with harsher punishment for repeat offences.