A23 Files Legal Challenge Against New Online Gaming Law

Head Digital Works, the operator of rummy and poker platform A23, has filed a petition in the Karnataka High Court, challenging the recently enacted Promotion and Regulation of Online Gaming Law, 2025. The law, passed by Parliament on August 21, imposes a blanket ban on all real-money online games, while allowing e-sports and casual gaming.

In its filing, A23 argues that the legislation unfairly criminalises games of skill like rummy and poker, putting legitimate businesses at risk of closure. The company has requested the court to declare the law unconstitutional in its application to skill-based formats. The case is scheduled for a hearing on August 30.

First Formal Legal Pushback Amid Industry Silence

This marks the first formal legal challenge to the new law. Notably, major platforms like Dream11 (Dream Sports) and Gameskraft have thus far chosen not to challenge the legislation, despite being among the most affected.

More Legal Action to Come

A23’s move could trigger a wave of similar petitions, as several real-money gaming platforms have already shut down operations, including:

• My11Circle
• WinZO
• Zupee
• Probo
• Paytm First Games
• PokerBaazi (backed by Nazara Technologies)

Industry Pivots to New Business Models

In response to the crackdown, several companies are diversifying into new verticals. For example:

• Dream11 launched a wealth management app, Dream Money.
• WinZO debuted WinZO TV, a microdrama streaming platform.

Also Read: Nazara Technologies and Delta Corp Share Price Drop Amid Online Gaming Bill 2025

Regulators vs Industry

While some policymakers and critics argue the law is necessary to curb addiction and financial risks, industry bodies have voiced strong opposition. Organisations like the:

• All India Gaming Federation (AIGF)
• E-Gaming Federation (EGF)
• Federation of Indian Fantasy Sports (FIFS)

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