Online gaming company A23 has challenged the central government’s new law banning online money games in the Karnataka High Court. This is the first case filed against this law in the country. Due to the new legislation, several popular online gaming competitions have been abruptly shut down, creating uncertainty about the future of the industry.
Recently, Parliament passed the “Online Gaming Promotion and Regulation Bill, 2025,” which received President Droupadi Murmu’s approval and has now become law. The primary aim of this law is to impose a complete ban on online money-based games while promoting e-sports and online social games. The government stated that the move is intended to curb addiction-related issues, money laundering, and financial fraud linked to online gaming.
Following the implementation of the law, major online gaming platforms such as Dream11, My11Circle, WinZO, Zupee, and PokerBaazi (backed by Nazara Technologies) have suspended their real-money gaming services.
A23’s Petition in Court
According to Reuters, A23 — which offers online games like rummy and poker — stated in its petition that the new law “criminalises legitimate businesses based on skill-based games,” which could lead to the sudden closure of several gaming companies. The company argued that the legislation reflects a “paternalistic attitude” by the state and should be declared unconstitutional when applied to skill-based games like rummy and poker. A23 also revealed that its platform has over 70 million registered players.
Also Read-: Online Gaming Bill Passed in Lok Sabha: Know the Punishment for Those Playing Online Games for Money
Reaction from Other Gaming Companies
Meanwhile, leading fantasy gaming giant Dream11, Mobile Premier League (MPL), and real-money gaming company Gameskraft have decided not to take legal action against the law.
A Gameskraft spokesperson said,
“As a responsible and law-abiding corporate entity, Gameskraft has no intention of challenging this law in court. We fully respect the legislative process and are committed to operating within the legal framework.”
The company also announced that it disabled the “Add Cash” and gameplay services on its RummyCulture app on 22nd August, immediately after the law came into effect. Gameskraft plans to shift its focus in line with the new regulations and engage with policymakers to ensure responsible innovation, player protection, and regulatory compliance.
Dream Sports co-founder and CEO Harsh Jain stated in an interview that the company will not oppose the ban. Citing Moneycontrol, he said:
“The government has made it clear that they don’t want this right now. We don’t want to fight over something they have already decided against. We want to focus on the future.”
Jain further clarified that despite the ban, Dream11 will not lay off employees, although the company has lost 95% of its revenue and 100% of its profit overnight.
Impact on the Industry
The new law has pushed India’s real-money gaming industry into a deep crisis. Platforms like Dream11, where users create virtual cricket teams based on real players’ performances and earn points through runs, wickets, and catches, have been forced to shut down money-based offerings.
The industry, which experienced rapid growth in recent years, now faces a period of significant uncertainty.
Supporters of the law argue that the step was necessary to protect players from financial risks and gambling addiction. However, critics believe the legislation unfairly targets skill-based games and could cause irreversible damage to the sector.
With A23’s legal challenge, the debate over online money gaming in India is expected to intensify further.