A23, an online gaming company, has challenged India's new ban on money-based online games, arguing it unfairly targets skill-based games like rummy and poker.
Online gaming company A23 has become the first to challenge the Centre’s sweeping ban on money-based online games, arguing that the new law unfairly clubs games of skill like rummy and poker with gambling.
The government last week rolled out legislation calling money-based games “addictive” and a “social evil.” Gambling is already restricted in India, but this new move expands the ban to platforms that many industry voices say are based on skill, not chance.
In its petition before the Karnataka High Court on August 28, A23 said the law “criminalises the legitimate business of playing online games of skill, which would result in the closure of various gaming companies overnight.” The company called the ban “a product of state paternalism” and urged the court to strike it down for skill-based platforms.
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The stakes are high for India’s booming gaming industry, which has attracted investments from global players like Tiger Global and Peak XV Partners and was expected to touch $3.6 billion by 2029. A23 itself claims more than 70 million players on its platform, largely through rummy and poker.
The impact has been immediate. Dream11 and Mobile Premier League (MPL) have already pulled the plug on their money-based games. MPL insiders say the company has no plans for a legal battle and is instead shifting focus to free-to-play offerings. Dream11 co-founder Harsh Jain admitted that 95% of revenues “disappeared overnight”, though the company too will stay away from the courts.
Despite splashy ad campaigns and endorsements from top cricketers, the industry is staring at an uncertain future. The government, however, has stood firm, insisting the ban is needed to curb addiction and protect users from financial harm.
The IT ministry has yet to respond to A23’s lawsuit.
