Legal Challenge to India's New Online Gaming Law
The Modi government's new online gaming law has sparked significant controversy as it faces its first legal challenge. A23, an online gaming company, has approached the Karnataka High Court to contest the recent ban on online money-based games. This law, which prohibits all forms of online money games, has led to the abrupt shutdown of many popular gaming platforms, casting a shadow over the future of the online gaming industry in India.
The law was enacted following the passage of the Promotion and Regulation of Online Gaming Bill, 2025, which aims to combat rising issues such as addiction, money laundering, and financial fraud associated with online gaming. However, A23 argues that the law criminalizes the legitimate business of skill-based games like rummy and poker. They have requested the court to declare the law unconstitutional when applied to these games.
While A23 has taken a stand against the law, other major players in the online gaming sector, such as Gameskraft and Dream11, have opted not to challenge it. A spokesperson for Gameskraft stated that they respect the legislative process and are committed to operating within the law. They have even paused their rummy gaming services since the law's implementation, focusing on compliance and future strategies instead.
Dream11's co-founder, Harsh Jain, also expressed that they do not plan to oppose the ban, indicating that the company wants to move forward rather than dwell on past conflicts with the government. The ban, however, has had a severe impact on Dream11, which saw a drastic drop in revenues and profits overnight.
A23's legal challenge highlights the ongoing tension between regulatory measures and the growth of the gaming industry in India. As the industry evolves, questions regarding player rights, business sustainability, and the balance between regulation and innovation will continue to emerge. The outcome of this legal battle could set a significant precedent for the future of online gaming in India.
