India’s first legal pushback against the online money gaming ban comes from A23, which calls the law unconstitutional and a threat to skill-based platforms.
A23 Takes Legal Action Over Gaming Ban
Online gaming platform A23 has filed a legal petition against India’s recent ban on money-based online games, becoming the first company to challenge the controversial law in court. The petition, filed in the Karnataka High Court, argues that the law wrongly categorizes games of skill like rummy and poker as gambling, criminalizing legitimate business.
Key Details of the Legal Challenge
- Filed By: Head Digital Works (parent company of A23)
- Court: Karnataka High Court
- Filing Date: August 28, 2025
- Main Claim: The law is unconstitutional when applied to skill-based games
- Quote from petition: “This legislation criminalizes the legitimate business of playing online games of skill… it could shut down gaming companies overnight.”
The filing has been reviewed by Reuters, though it has not yet been made public. The Ministry of Electronics and IT has not commented on the legal challenge as of now.
Industry Reacts to the Ban
India’s online gaming sector, projected to reach $3.6 billion by 2029, is facing a major setback due to the new law. Several leading platforms have shut down real-money offerings in response.
Key Reactions:
- Dream11: Has not challenged the law; CEO Harsh Jain revealed the company lost 95% of revenue overnight.
- Mobile Premier League (MPL): Discontinued money-based games and advised members to shift to free-to-play models.
- A23: Chose to take a legal route, distinguishing itself from other platforms.
What the Government Says
The ban, introduced by Prime Minister Narendra Modi’s government, aims to curb addiction and address what it calls “social evils” related to online gambling. Though gambling is already tightly regulated in India, this new law broadens restrictions to include many real-money digital games.
“Hiring Indian workers should be the priority… but this law endangers a legitimate industry,” said a source close to the gaming sector.
Impact on Investors and Future Growth
The gaming ban is a serious blow to a sector backed by top venture capital firms such as:
- Tiger Global
- Peak XV Partners
With the ban in place, investor confidence may decline, and startups in the space could face shutdowns, layoffs, or complete strategy overhauls.
What’s Next?
- Court Decision Pending: Karnataka High Court will review A23’s petition in the coming weeks.
- Industry Eyes on A23: The outcome may determine whether other platforms follow suit with legal challenges.
- Policy Clarity Needed: Industry bodies are likely to push for regulations that distinguish between games of skill and chance.
Related News : These Apps Have Halted Real-Money Gaming Amid Crackdown on Online Betting
