A23 Files Petition Against India’s Ban on Money-Based Online Games
India’s once-thriving online gaming sector has been upended following the nationwide ban on money-based online games. The first major legal challenge is now underway. On August 28, Head Digital Works, the parent company of skill-based gaming platform A23, filed a petition with the Karnataka High Court to contest the Promotion and Regulation of Online Gaming Bill, 2025.
In its petition, the company argued that the legislation “criminalises the legitimate business of playing online games of skill, which would result in the closure of various gaming companies overnight.” It also criticized the law as a “product of state paternalism” and asked the court to declare it unconstitutional when applied to skill-based games such as rummy and poker.
So far, the Ministry of Electronics and Information Technology has not issued a response to the legal filing, leaving operators and industry observers awaiting further developments.
Ban Brings Industry to a Standstill
The new bill, passed by Parliament and signed into law by President Droupadi Murmu last week, enforces a sweeping prohibition on all forms of money-based online gaming. The government has defended the legislation as necessary to combat gambling addiction, fraud, and money laundering. The restrictions, however, do not apply to e-sports or casual gaming.
The impact was immediate. Popular platforms including Dream11, Mobile Premier League (MPL), WinZO, Zupee, My11Circle, and PokerBaazi halted their real-money operations. Dream11’s co-founder and CEO Harsh Jain described the financial blow, stating, “95% of our group’s revenues have disappeared overnight.” Despite the setback, Dream11 has opted not to join the legal fight. MPL similarly indicated it would refrain from pursuing legal remedies, instead recommending a shift toward free-to-play formats as the industry seeks ways to adapt.
Economic Fallout from a Rapidly Growing Market
The ban comes at a critical moment for the digital gaming industry in India, which was valued at $3.7 billion in 2024 and had been projected to grow to $9.1 billion by 2029, according to the India Gaming Report 2025. The sector has also drawn nearly $3 billion in foreign investment over the last five years, with backing from major firms such as Tiger Global and Peak XV Partners.
Industry voices are sharply divided. While some believe the legislation is a step toward accountability and safer gaming environments, others argue it threatens innovation and economic momentum. Ananay Jain, Partner at Grant Thornton Bharat, described the bill as a “double-edged sword,” saying it delivers “clarity and accountability” but simultaneously “risks stifling innovation and burdening startups.”
Leading industry associations — 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 the industry’s estimated Rs 2 lakh crore valuation and Rs 31,000 crore in annual revenue. They warn that the ban could trigger widespread layoffs, reduced tax revenues, and a slowdown in digital innovation.
What Lies Ahead
As A23 pushes its case in court, other platforms appear to be recalibrating their strategies rather than taking legal action. Market analysts caution that the withdrawal of regulated domestic platforms could create an opening for offshore operators to fill the demand gap, potentially worsening the very issues the law seeks to address.
The outcome of this legal challenge will likely shape the trajectory of India’s skill-based gaming sector, determining whether a regulated framework for legitimate skill games can coexist with the government’s broader effort to control gambling-related harms.
Source: A23 Takes Legal Action Against India’s Ban on Online Money Games, lcb.org, Aug 30, 2025.