India’s on-line cash gaming ban faces first authorized problem as A23 proprietor strikes Karnataka HC

Head Digital Works, the dad or mum firm of India’s main on-line gaming platform A23, has approached the Karnataka High Court difficult the Promotion and Regulation of Online Gaming Law, 2025, changing into the primary actual cash gaming (RMG) operator to formally contest the laws.

The new laws marks a setback for India’s on-line actual cash gaming trade, which is backed by enterprise capital companies comparable to Tiger Global and Peak XV Partners and was projected to be value $3.6 billion by 2029, in accordance with trade estimates cited by Reuters.

In a petition, reviewed by Reuters, filed earlier than the Karnataka High Court, A23 — a platform providing rummy and poker –argued that the regulation “criminalises the legitimate business of playing online games of skill, which would result in the closure of various gaming companies overnight.”

The firm additional described the regulation as a “product of state paternalism” and urged that or not it’s declared unconstitutional in its software to video games of talent comparable to rummy and poker, Reuters reported, citing a courtroom submitting dated August 28 that’s not public however was reviewed by the information company.

The Promotion and Regulation of Online Gaming Bill, 2025, handed by Parliament on August 21 and now enacted into regulation, has despatched shockwaves throughout India’s real-money gaming sector. The laws seeks an entire ban on all types of on-line cash video games, whereas selling e-sports and on-line social gaming.

Platforms pull the plug

Soon after the Bill’s passage, main operators together with Dream11, My11Circle, WinZO, Zupee, MPL, and Nazara Technologies-backed PokerBaazi suspended their real-money gaming providers. Dream11, endorsed by icons like MS Dhoni and Rohit Sharma, discontinued all money contests, whereas My11Circle mentioned in a social media put up that it was halting paid video games.PokerBaazi assured customers that funds stay protected and withdrawable, even because it stopped real-money choices. WinZO, which hosted over 100 such video games, mentioned it was “responsibly withdrawing impacted offerings,” whereas MPL confirmed on LinkedIn that customers can nonetheless withdraw balances regardless of the suspension of cash video games.

Foreign funding at stake

The Indian gaming trade has grown quickly, valued at USD 3.7 billion in 2024 and projected to hit USD 9.1 billion by 2029, in accordance with the India Gaming Report 2025.

With almost USD 3 billion in FDI inflows over 5 years and a person base forming 20% of the world’s avid gamers, India has emerged as one of many largest gaming markets globally. The new regulation, nonetheless, casts uncertainty over this progress trajectory.

Industry response divided

While the ban has been welcomed by some as a safeguard in opposition to habit, fraud, and cash laundering, trade insiders have flagged unintended penalties. Ananay Jain, Partner at Grant Thornton Bharat, referred to as the laws a “double-edged sword,” noting that whereas it creates a transparent regulatory atmosphere and enforces accountability, blanket restrictions danger stifling innovation and burdening startups.

Players search reduction

Industry our bodies such because the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS) have written to Home Minister Amit Shah, stressing that the sector represents a Rs 2 lakh crore enterprise valuation with annual revenues of over Rs 31,000 crore. They have urged the federal government to rethink the sweeping ban on skill-based cash video games, warning of job losses and monetary setbacks for a dawn trade.