India Sees First Legal Challenge to Ban on Online Money Games
New Delhi:
Gaming platform A23 has filed a petition challenging the government’s recent ban on online money-based games, marking the first legal opposition to the new law that has forced popular apps to halt operations and left the future of the $3.6 billion industry uncertain.
The law, introduced last week by Prime Minister Narendra Modi’s government, prohibits online contests involving real money—games the industry argues are skill-based and not gambling. Gambling is already heavily restricted in India.
In its filing at the Karnataka High Court, A23, which hosts poker and rummy, argued that the legislation “criminalises legitimate online games of skill”, threatening overnight shutdowns of gaming firms. It further termed the measure a “product of state paternalism”, urging the court to declare it unconstitutional when applied to skill-based formats.
The case, filed on August 28, was reviewed by Reuters though it has not been made public. The IT ministry has yet to comment.
A23, which claims over 70 million registered users, is among several gaming companies backed by top investors including Tiger Global and Peak XV Partners.
Popular platforms like Dream11 and Mobile Premier League (MPL) suspended their money-based games following the ban. MPL has opted not to contest the law and instead focus on free-to-play formats, while Dream11 co-founder Harsh Jain admitted that “95% of our revenues disappeared overnight” but ruled out legal action.
The government has defended its move, citing the risks of addiction and framing the ban as a duty to curb “social evils.”
News Source : Information for this article was gathered from a variety of reliable news outlets.
