Online games ban faces the first legal test as Karnataka moves, listening on August 30

The online gaming sector in India was marginalized by collecting new legislation prohibiting money -based games, forcing the platforms to stop operations overnight. A23, one of the largest skills -based gaming companies in the country, has now transmitted the Karnataka Supreme Court, which challenges the law, making it the first legal test of the government’s controversial movement. The case will be heard on August 30, after mentioning the petition for an urgent listing on Wednesday by the major defenders C Aryama Sundara and Dhyan Chinnappa.

New law

The Law of Promotion and Regulation of the Games Law, online, 2025, received the approval of President Dropadi Mirmo on August 22, just days after it was cleared by Parliament. The legislation makes it illegal to provide any form of online money game – more like whether it is a chance or skill game. This ventricular ban has shook an industry that has witnessed rapid growth in recent years, as the user base estimates were placed in hundreds of millions.

After the law has passed, the main platforms such as Dream11, My11circle, Winzo, Zupee, Nazara Technologies have stopped their real money offers, which effectively closed basic revenue flows.

A23 Challenge

In its petition before the Karnataka Supreme Court, the A23, which runs the popular Rummy and Poker platforms, argued that the law “criminalizes the legitimate works to play skill games online, which will lead to the closure of various games companies overnight.” Reuters news agency, noting that the court file, also described the legislation as “the product of the state’s parental” and requested that it be announced unconstitutional when applied to the skills -based games.

A23.com, which claims to have more than 70 million registered players, has placed himself as a leading platform in the expanded online games market in India. Its appeal can put a precedent for how to balance the courts on an organizational authority with the industry demanding legitimacy under the constitution.

The Ministry of Information and Information Technology has so far refused to comment on the petition.

The industry is divided

It is interesting that all companies do not challenge the new law. Gameskraft, another real money games operator, issued a statement saying it has no intention to take legal action. A company spokesman said: “We respect the legislative process completely and remain committed to working within the framework of the law,” said a company spokesman.

Gameskraft confirmed that she had temporarily stopped the “AdD Cash” feature and playing services attached to its Rummy applications, including Rummyculture, August 22. She added that she focuses on “constructive dialogue with policy makers, responsible innovation and organizational compatibility.”

Likewise, the co -founder of Dream Sports Harsh Jain explained that his company, which runs Dream11, will not oppose the ban. “The government has made it clear that they do not want this now. I don’t want to fight with the government about something they don’t want,” Jain said in an interview with Moneycontrol. He admitted that 95 % of DREAM11 revenues and all its profits have disappeared overnight, but he stressed that the company will not resort to the demobilization of workers.

Industrial associations including the All India Gaming (AIGF), the Electronic Games Federation (EGF), and the FIFS Fiction Federation (FIFS) to the Minister of Interior Amit Shah, was written, with the highlighting that the sector is envisioned by the evaluation of an institution worth about 2 rupees of Cruising Rs. The government bodies urged the reconsideration of the comprehensive ban on skills -based financial games, and warned that such a step could lead to great losses in jobs and financial disruption, as one of the fastest sunrise industries in India.