Lagatar24 Desk
Bengaluru: Indian gaming company A23 has filed a legal case in the Karnataka High Court against the government’s recent law banning money-based online games such as rummy and poker. The company argues that the law criminalises legitimate skill-based gaming and threatens the survival of the industry.
A23’s Legal Arguments
In its petition, A23 stated that the new law effectively shuts down the skill gaming sector overnight, forcing closures of established companies. It described the ban as a “product of state paternalism” and urged the court to declare it unconstitutional when applied to skill-based games like poker and rummy. A23, which claims a player base of more than 70 million, emphasised that its operations are legitimate and distinct from gambling.
Impact On The Gaming Industry
The legislation has already disrupted the multi-billion-dollar gaming ecosystem in India, heavily backed by investors such as Tiger Global and Peak XV Partners. Dream11 and MPL, two of the largest fantasy and online sports platforms, suspended their money-game operations following the ban. MPL confirmed it would not challenge the law, instead pivoting toward free-to-play models, while Dream11 admitted that “95% of our revenues disappeared overnight.”
Government’s Stand
Prime Minister Narendra Modi’s government justified the ban by citing social responsibility, arguing that money-based online games cause addiction and qualify as social evils. Officials stated that gambling was already highly restricted in India, and money-linked online games were simply an extension of harmful practices that required urgent regulation.
Industry’s Uncertain Future
Analysts estimate that India’s gaming industry could have grown to $3.6 billion by 2029, but the ban has cast doubt over its trajectory. While A23 has opted to legally contest the law, other big players are focusing on long-term adjustments rather than litigation. For now, the future of money-based online skill gaming in India rests with the judiciary’s decision on A23’s challenge.
