An online rummy platform has become the first company to challenge India’s new law banning real-money gaming, arguing in the Karnataka High Court that the legislation is “arbitrary and unconstitutional.”
Head Digital Works, which operates A23 Rummy, filed a petition on Thursday seeking to strike down key provisions of the Promotion and Regulation of Online Gaming Act, 2025. The case will be heard on Saturday by Justice B Shyama Prasad.
The petition argues that the blanket ban reverses the government’s earlier policy that permitted skill-based games and treated them differently from games of chance. It claims the Act was enacted without consultation and has led to significant economic disruption.
“The Act was enacted without consultation, reversing the government’s earlier policy of supporting the online skill gaming sector. This has led to massive economic disruption, risking the livelihood of over two lakh people and wiping out over ₹23,440 crore in investments,” the petition states.
The company argues that games of skill such as rummy and poker are legitimate business activities protected under Article 19(1)(g) of the Constitution and should not be classified as gambling. It claims the law violates constitutional rights including equality under Article 14 and the right to practice any profession.
The petition cites previous rulings by the Madras and Kerala High Courts and the Supreme Court that recognised games of skill as legitimate business activities distinct from gambling.
The challenge comes days after the law completed its parliamentary passage in a record three days. The legislation faced criticism for its expedited passage without substantial parliamentary debate.
The law divides online games into three categories – e-Sports, social gaming, and real-money games. Whilst it encourages e-Sports and social gaming, it completely bans real-money games and their advertising, imposing penalties of up to three years imprisonment and fines reaching ₹1 crore for facilitators.
The government justified the ban citing concerns over addiction, financial harm, and links to unlawful activities. IT minister Ashwini Vaishnaw told Parliament that 450 million players have lost ₹20,000 crore to such games.
A23 Rummy’s parent company claims the ban has eliminated over 600 jobs within the firm alone and affects the livelihoods of thousands across the industry.
The economic impact is already visible. The Board of Control for Cricket in India this week terminated its ₹358 crore jersey sponsorship deal with fantasy sports platform Dream11, which announced it would shut down real-money gaming operations following the law’s passage.
The petition specifically challenges the Act’s definition of online money games as “any online game which, irrespective of the element of skill or chance, is played by a user making a payment in expectation of winning.” This definition effectively eliminates the traditional legal distinction between skill and chance games.
The government maintains that empirical data shows Indians lose approximately ₹15,000 crore annually to real-money games, justifying the comprehensive ban as necessary to protect citizens from financial exploitation and addiction.
The Act also targets offshore platforms serving Indian users, empowering authorities to block illegal websites under the Information Technology Act. Officials said the problem is particularly pronounced in smaller cities where online money gaming has become a serious social issue.