Modi govt’s new on-line gaming regulation faces first authorized problem, A23 strikes Karnataka HC | Newest Information India

A23, an internet gaming firm in India, has moved the Karnataka excessive court docket, difficult the federal government’s ban on on-line money-based video games. This is the primary case in opposition to a regulation that led to the sudden shutdown of well-liked contests and has thrown the trade’s future into doubt, information company Reuters reported.

The jolt to real-money on-line gaming got here after Parliament handed the Promotion and Regulation of Online Gaming Bill, 2025, which banned all types of on-line cash video games whereas selling e-sports and on-line social video games.

Now an Act, after President Droupadi Murmi’s nod, it goals to crackdown on rising situations of habit, cash laundering and monetary fraud by way of such purposes.

Following the passage of the Bill in Parliament, on-line gaming platforms, together with Dream11, My11Circle, WinZO, Zupee, and Nazara Technologies-backed PokerBaazi, have halted their real-money on-line gaming choices.

What A23 stated within the court docket submitting

In a court docket submitting on the Karnataka excessive court docket, A23, which affords rummy and poker video games, stated the regulation “criminalises the legitimate business of playing online games of skill, which would result in the closure of various gaming companies overnight”, Reuters reported.

A23 added in its submitting that the brand new regulation is a “product of state paternalism” and asks that it’s declared unconstitutional when utilized to video games of talent corresponding to rummy and poker.

The IT ministry didn’t instantly reply to queries of the information company.

A23.com describes itself as an internet gaming platform with greater than 70 million gamers.

What about different on-line gaming apps?

Fantasy gaming giants Dream11 and Mobile Premier League, the place digital cricket groups are created based mostly on actual gamers, incomes factors on runs, wickets and catches, and real-money gaming agency Gameskraft stated they won’t contest the brand new on-line gaming regulation.

“As a responsible and law-abiding corporate entity, Gameskraft has no intention of pursuing any legal challenge to the legislation. We fully respect the legislative process and remain committed to operating within the framework of the law,” a Gameskraft spokesperson stated.

Gameskraft’s assertion comes a day after Dream Sports co-founder Harsh Jain stated in an interview that that the corporate has no plans to oppose the ban.

“I think the government has made it clear that they don’t want this right now. I don’t want to live in the past. We want to focus entirely on the future and not fight with the government on something that they don’t want,” Moneycontrol quoted Harsh Jain as saying.

Gameskraft stated it would now redirect its focus. “We have already initiated structured internal discussions to chart the road ahead. Guided by our core values and full compliance with the new bill, Gameskraft remains committed to constructive dialogue with policymakers and stakeholders, responsible innovation, player protection, and regulatory alignment,” the spokesperson added.

Gameskraft stated it has paused ‘Add Cash’ and gameplay providers on its rummy apps, together with RummyCulture, after the regulation’s passage on August 22.

Dream Sports CEO Harsh Jain stated it won’t resort to layoffs regardless of being hit by the ban.

“95 per cent of Dream11’s revenues have disappeared overnight, and 100 per cent of our profits…,” Jain stated.

Dream Sports has been a significant real-money gaming participant in India, nevertheless it has to shut its money-based video games after the federal government banned all types of on-line cash video games.