A23 told the Karnataka High Court that the new online gaming law ‘criminalises the legitimate business of playing online games of skill’
Indian gaming platform A23 is reportedly taking the government to court, in what appears to be the first legal tussle since the “Promotion and Regulation of Online Gaming Act, 2025” was cleared by the parliament.
In its filing at the Karnataka High Court, A23 stated that the law “criminalises the legitimate business of playing online games of skill” and warned it could shut down gaming companies overnight. A23 reportedly called the ban a form of “state paternalism.”
India’s New Online Gaming Law
The new law, cleared by both houses of parliament last week, bans real-money games (RMGs). The bill bans “harmful” online money gaming platforms, along with related advertisements and financial transactions, citing psychological risks.
The law also prohibits advertising of such platforms, blocks payments through banks and intermediaries, and imposes penalties of up to three years in jail or fines of ₹1 crore for operators. Advertisers face up to two years in jail or fines of 50 lakh rupees. E-sports and social games will be regulated separately, with subscriptions allowed but no wagers.
Multi-billion-dollar Industry In Turmoil
India’s online gaming industry, supported by venture capital giants such as Tiger Global and Peak XV Partners, was once projected to grow into a $3.6 billion market by 2029.
The ban led to the sudden suspension of popular skill-based contests, including rummy, poker, and fantasy sports, causing the industry to be thrown into turmoil. The government argues that such games encourage addiction and amount to gambling, which is already tightly regulated in the country.
India’s biggest fantasy sports platform, Dream11, has shut down its real-money gaming arm and saw its partnership with the Board of Control for Cricket in India (BCCI) terminated. Parent company Dream Sports is expected to pivot towards ventures such as FanCode, Sportz Drip, Cricbuzz, and Willow TV.
Dream11 CEO Harsh Jain admitted the law has wiped out 95% of revenues
Gameskraft’s online rummy app RummyCulture has temporarily suspended cash transactions and gameplay services, while Zupee has suspended paid games but kept the platform operational with free games like Ludo Supreme, Ludo Turbo, Snakes & Ladders, and Trump Card Mania accessible to all users.
Mobile Premier League (MPL) announced the suspension of all its real-money offerings in the country on LinkedIn, signaling a pivot toward free-to-play models.
Stock Watch
Nazara Technologies’ stock, which has shed nearly 13% over the past month, is up 3% at ₹1,172.2.
However, retail sentiment on Stocktwits turned ‘bearish’ from ‘neutral’ a day earlier.
Nazara’s associate firm, Moonshine Technologies, which operates a card-based online gaming platform PokerBaazi, suspended its real-money online gaming operations last week. Nazara has a 46.07% stake in Moonshine Technologies.
Delta Corp shares were down 3%.
For updates and corrections, email newsroom[at]stocktwits[dot]com. <