India’s on-line gaming trade, as soon as a quickly increasing market fueled by billions in overseas funding, is now dealing with unprecedented disruption after the implementation of the Promotion and Regulation of Online Gaming Act, 2025. The sweeping laws, handed by Parliament and signed by President Droupadi Murmu, imposes a blanket ban on all money-based on-line video games, sparking the sector’s first authorized battle led by A23.
A23’s Petition Against the Ban
A23, a number one operator in India recognized for its on-line rummy and poker choices, has filed a petition with the Karnataka High Court. The case, lodged by its guardian firm, Head Digital Works, on August 28, challenges the legislation’s broad software. In its submitting, A23 argued that the laws “criminalises the legitimate business of playing online games of skill, which would result in the closure of various gaming companies overnight.” The firm additional criticized the legislation as a “product of state paternalism,” urging the court docket to deem it unconstitutional for skill-based platforms.
A23, which claims a person base exceeding 70 million registered gamers, is looking for judicial reduction to safeguard its operations and people of different related operators. As of now, the Ministry of Electronics and Information Technology has not commented on the continuing authorized proceedings.
The ban has already had a major impression in the marketplace. Platforms reminiscent of Dream11, Mobile Premier League (MPL), My11Circle, WinZO, Zupee, and PokerBaazi have both suspended or fully shut down their money-based video games.
Immediate Fallout Across the Industry
The abrupt enforcement of the Act despatched shockwaves all through the $3.7 billion gaming trade, which was projected to develop to $9.1 billion by 2029, in keeping with the India Gaming Report 2025. Global buyers, together with Tiger Global and Peak XV Partners, have invested near $3 billion in the sector over the previous 5 years, underscoring India’s emergence as one of many largest gaming markets worldwide.
Dream11, a significant fantasy sports activities platform, has been significantly hard-hit. CEO Harsh Jain informed CNBC TV18, “95% of our group’s revenues have disappeared overnight,” however added that the corporate has no plans to contest the brand new legislation. Similarly, MPL introduced it could not pursue authorized motion, as a substitute pivoting its enterprise technique towards free-to-play fashions to stay operational.
Gameskraft, one other notable participant in the real-money gaming house, echoed this sentiment. In a press release, the corporate emphasised its compliance with the laws: “As a responsible and law-abiding corporate entity, Gameskraft has no intention of pursuing any legal challenge to the legislation. We fully respect the legislative process and remain committed to operating within the framework of the law.”
The firm additionally confirmed that it has paused ‘Add Cash’ and gameplay providers on its fashionable rummy apps, together with RummyCulture, whereas initiating inside discussions on future technique. Despite the monetary blow, Dream11 has clarified that no layoffs are at present deliberate.
Divided Perspectives on the Ban
The on-line gaming sector’s response to the Act is deeply divided. Proponents argue the ban is a important step towards addressing the rise in playing dependancy, fraud, and cash laundering related to money-based on-line video games. Critics, nonetheless, say the laws is overly broad and dangers stifling innovation whereas jeopardizing hundreds of jobs in a high-growth trade.
Ananay Jain, a Partner at Grant Thornton Bharat, described the laws as a “double-edged sword,” noting that whereas it offers regulatory readability, it “risks stifling innovation and burdening startups” that had thrived beneath a beforehand open market construction.
Industry associations, together with the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS), have collectively appealed to Home Minister Amit Shah. They highlighted the sector’s estimated valuation of Rs 2 lakh crore and annual revenues of greater than Rs 31,000 crore, warning of great financial setbacks, job losses, and declining tax contributions.
Observers have additionally famous the potential unintended penalties of the ban, such because the rise of offshore platforms stepping in to fill the hole left by regulated home operators. Although these offshore websites face heavy taxation, the dearth of home competitors might enable them to dominate India’s real-money gaming market.
As the authorized battle unfolds, A23’s petition represents the trade’s first main try to problem the federal government’s hardline stance on on-line money-based gaming, with the result anticipated to form the way forward for skill-based platforms throughout the nation.
Source:
A23 leads legal battle against India’s online gaming ban, information.worldcasinodirectory.com, August 28, 2025.
