NationalModi Government's New Online Gaming Law Confronts First Legal Challenge As A23...

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Modi Government’s New Online Gaming Law Confronts First Legal Challenge As A23 Approaches Karnataka HC

A23, one of India’s biggest online gaming platforms, has taken the government to court over its sweeping ban on money-based digital games. The company has filed a petition in the Karnataka High Court, becoming the first legal challenge to the new law that has already forced popular contests to close and created uncertainty for the industry, Reuters reported.

The dispute began after Parliament passed the Promotion and Regulation of Online Gaming Bill 2025, which later received approval from President Droupadi Murmu and became law. The Act bans all forms of real-money online games while encouraging e-sports and casual social games. The government has argued that the legislation is meant to curb addiction, money laundering and financial fraud linked to these platforms.

Following the approval of the law, companies such as Dream11, My11Circle, WinZO, Zupee and PokerBaazi backed by Nazara Technologies suspended their money-based offerings.

In its petition, A23 which runs rummy and poker said the law wrongly criminalises skill-based gaming and would force established platforms to shut down overnight. The company described the new law as an example of state paternalism and asked that it be declared unconstitutional when applied to skill games like rummy and poker.

The IT Ministry has not yet commented on the case. A23 describes itself as a gaming platform with over 70 million registered players.

Response From Other Companies

Not every gaming firm has decided to go to court. Gameskraft said it accepts the legislation and will adjust its business accordingly. A company spokesperson stated that it is committed to responsible innovation, player protection and cooperation with policymakers. Gameskraft has already suspended Add Cash and gameplay services on its rummy platforms including RummyCulture.

Dream Sports co-founder Harsh Jain also confirmed that the company will not challenge the new law. Speaking to Moneycontrol, Jain explained that around 95 percent of Dream11’s revenue disappeared overnight but added that the company does not want to fight the government and will instead focus on the future. He further assured that Dream Sports will not cut jobs despite the setback.

Dream Sports has been one of the most prominent players in India’s real-money gaming space but has now shut down its money-based games following the new law.

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