- By Shubham Bajpai
- Thu, 28 Aug 2025 03:28 PM (IST)
- Source:JND
The Central government's ban on online money games has been challenged in the court by A23, an online gaming company in India. A23 has challenged the law, enacted by the Parliament, in the Karnataka High Court, arguing that the games rely on skills and hence are not gambling.
It is the first legal challenge to the Promotion and Regulation of Online Gaming Act, 2025. The online gaming company has called the law plea "a product of state paternalism."
A23 in its plea has said the law "criminalises the legitimate business of playing online games of skill, which would result in the closure of various gaming companies overnight". A23 has sought to declare the act unconstitutional as it applies to games of skill such as rummy and poker, Reuters reported.
Other prominent platforms such as Dream11 and Mobile Premier League (MPL) have discontinued their real-money games after the act came into effect.
Both platforms have decided not to pursue a legal battle against the gaming law. The bill banning real money games and regulating online gaming was passed last week by the Parliament.
Later, it received the President's nod to become an act. According to the aforementioned report, the legislation has came as a setback for the industry, as based on industry estimates, it was on track to be worth $3.6 billion in India by 2029.
The law bans all online real money gaming activities, from fantasy sports to online lotteries. The act has made such activities punishable by up to 3 years' jail term and/or a fine of up to Rs 1 Crore.
Repeated offence can attract 3-5 years imprisonment and a fine of up to Rs 2 crore. The law also tightens its grip on those promoting and advertising such games by making it a punishable offense, attracting imprisonment of up to 2 years and a fine of up to Rs 50 lakh.