A23, a prominent online gaming platform operated by Head Digital Works, has filed the first legal challenge against the newly enacted Promotion and Regulation of Online Gaming Act, 2025. The petition argues that the law—signed last week by the President—unconstitutionally criminalizes legitimate, skill-based gaming like rummy and poker.
This marks the sector’s initial court challenge to a law that has already forced leading platforms, including Dream11 and Mobile Premier League, to halt real-money gameplay operations.
What’s Inside A23’s Petition?
In its filing at the Karnataka High Court, Head Digital Works contends that the new legislation:
- Treats games of skill as gambling, despite constitutional protections.
- Stifles legitimate businesses cohesively built around skill-based competition.
- Erodes the constitutional right to trade and livelihood by targeting the industry’s business model
Industry Reacts Amid Broad Ban
The Promotion and Regulation of Online Gaming Act, 2025 bans all online money-based games, while promoting e-sports and social gaming under a unified regulatory framework. Violations carry penalties including up to 3 years imprisonment and fines up to ₹1 crore.
Gaming bodies have voiced alarm: the All India Gaming Federation (AIGF) and others warn the blanket ban could cripple a billion-dollar industry, result in massive tax losses (estimated at ₹20,000 crore annually), and drive users to unregulated offshore platforms.
Why This Matters
- Legal Precedent: A23’s petition could pave the way for judicial scrutiny based on constitutional rights and industry safeguards.
- Economic Stability: The rapid shutdown of money-based gaming is causing widespread financial distress among startups, investors, advertisers, and workers.
- Regulatory Clarity Urgent: There’s growing demand for nuanced regulation that distinguishes between games of skill and gambling to preserve innovation and jobs.
