India’s online gaming industry has been hit hard by a sweeping new law that bans all money-based games, triggering an overnight shutdown of major platforms. A23, a leading skill-based gaming firm, has challenged this legislation in the Karnataka High Court, making it the first legal case against the new rule. The court will hear the petition on August 30, after senior advocates sought an urgent hearing.
The Promotion and Regulation of Online Gaming Act, 2025, received presidential approval on August 22. It prohibits any form of real-money gaming—irrespective of whether it involves skill or chance. As a result, platforms like Dream11, My11Circle, WinZO, Zupee, and PokerBaazi have halted real-money operations, effectively ending their main source of income.
In its plea, A23 argues that the law wrongly criminalises legitimate skill-based games, calling it “state paternalism” and urging the court to declare the law unconstitutional for such games.
Meanwhile, companies like Gameskraft and Dream11 have opted not to contest the ban, instead choosing to comply. Industry bodies have appealed to the Home Minister to reconsider, warning of economic setbacks, job losses, and the collapse of a Rs 2 lakh crore sector.
