Gaming firm challenges legislation banning on-line cash video games in Karnataka High Court, listening to on Aug 30

The Karnataka High Court will hear on August 30, a petition filed by main on-line gaming firm A23, which has challenged the newly enacted legislation banning all types of on-line cash gaming in India.

The plea was talked about for pressing listening to on Wednesday by Senior Advocates C Aryama Sundaram and Dhyan Chinnappa.

The Promotion and Regulation of Online Gaming Act, 2025, which seeks to outlaw on-line cash video games no matter whether or not they’re primarily based on talent or likelihood, has now develop into legislation following President Droupadi Murmu’s assent on August 22. The Bill had been handed within the Lok Sabha on August 20 and within the Rajya Sabha on August 21.

With this legislation, the long-standing judicial distinction between “games of skill” and “games of chance” has been discarded, with any sport involving financial stakes falling below the prohibition.

Among the important thing provisions of the legislation is the classification of offences as cognisable and non-bailable. Running on-line cash video games or processing associated monetary transactions will now be handled as critical offences, giving police the facility to arrest with out a warrant and conduct searches with out prior approval.

Offenders could resist three years in jail and fines of as much as Rs 1 crore, whereas repeat offenders might be liable to harsher punishment, together with obligatory minimal sentences and fines of as much as Rs 2 crore.

The legislation additionally imposes a ban on monetary facilitation, with banks, fee suppliers and different intermediaries barred from processing or authorising transactions linked to prohibited video games. A nationwide regulatory authority will probably be established to register and classify video games, problem instructions and oversee compliance.

The authorities has defended the sweeping ban by invoking issues over public well being, monetary safety and nationwide safety. It cited manipulative and addictive design options in cash video games, mounting circumstances of monetary break, indebtedness and psychological hurt — significantly amongst youth and weak communities — and alleged hyperlinks between gaming platforms and cash laundering, tax evasion and even terrorism financing.

At the identical time, the laws distinguishes aggressive e-sports ruled by sporting guidelines, in addition to social and academic video games with out financial stakes, and gives for his or her promotion and integration into coverage frameworks. It additional notes the problem of imposing state-level restrictions towards offshore operators. Given these dangers, the Centre has argued that “it is prudent and practical in the interest of the general public to completely prohibit the activity, rather than attempt regulation.”

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