A23 Moves Karnataka HC Against Online Gambling Ban, Calls It Unconstitutional for Skill Games

Head Digital Works, parent of real-money gaming platform A23, has approached the Karnataka High Court to challenge the newly enacted Promotion and Regulation of Online Gaming Law, 2025, becoming the first major operator to seek judicial relief from the sweeping restrictions.

A23’s petition, filed on August 28, 2025, and reviewed by news agencies, argues the law effectively criminalises lawful businesses that offer games of skill such as rummy and poker and would force many gaming companies to close “overnight.”

The company told the court the statute is a product of “state paternalism” and asked judges to declare its application to skill-based contests unconstitutional.

The Fallout

Parliament approved the bill on August 21, 2025, and its enactment triggered an immediate industry reaction: leading platforms including Dream11, My11Circle, WinZO, Zupee, MPL and PokerBaazi paused their cash-play services.

Several firms emphasised that user balances remain withdrawable even as paid contests are suspended, while others described their moves as “responsible withdrawal” in response to the new legal regime.

India’s real-money gaming sector, backed by prominent venture capital firms and estimated to be worth billions, warned that the ban threatens jobs, startups and foreign investment.

Trade bodies including the All India Gaming Federation, the E-Gaming Federation and the Federation of Indian Fantasy Sports have petitioned the government, saying the sector represents a large, fast-growing market and urging policymakers to reconsider a blanket ban on games of skill.

Supporters of the law have framed it as a measure to curb addiction, financial fraud and money-laundering risks tied to online gambling. But legal experts and industry insiders say the legislation’s broad language may sweep legitimate skill-based businesses into the same category as chance-based betting, imposing criminal penalties and regulatory burdens that could stifle innovation and cripple a sunrise industry.

What Happens Next?

A23’s challenge opens the door to a test case on how India’s courts interpret the long-standing legal distinction between games of skill and games of chance, a distinction central to past judgments that allowed certain fantasy and card games to operate.

Observers will watch whether other operators join the litigation, and whether courts grant interim relief that might ease the immediate commercial disruption while the constitutional questions are litigated.

The legal battle marks a pivotal moment for India’s online gaming ecosystem: regulators say they are protecting consumers, but the industry warns that the new law risks erasing a rapidly growing business and reversing substantial investment.

The outcome of A23’s petition could determine whether India preserves a regulated space for skill-based online contests or moves toward a near-total ban on real-money gaming.