A23 Fights Back Against India’s Online Gaming Ban
Head Digital Works, the parent company of the online gaming platform A23, has become the first company to legally challenge India’s newly enacted law, which bans online gambling activities. The company filed a petition in the Karnataka High Court seeking to contest the constitutionality of India’s Promotion and Regulation of Online Gaming Bill, 2025.
LISTEN TO THIS ARTICLE:Head Digital Works contends that the law wrongfully equates skill-based games like poker and rummy, offered by A23, with gambling, despite their reliance on strategy and expertise. In the court document, the company labels the legislation as a “product of state paternalism” that oversteps constitutional limits.
The company argues the ban violates earlier judicial precedents, such as the Karnataka High Court’s 2022 ruling that overturned a state-level prohibition on skill-based gaming for infringing on personal freedoms. It further challenges the central government’s jurisdiction, calling the bill “colourable legislation” that encroaches on state powers.
With over 75 million registered users across India, A23 will be one of the operators hardest hit by the new regulations, as it may lead to a substantial loss of business and revenue for the company.
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Industry Reactions to the Legislation
While A23 has initiated this first judicial pushback against the law, most major operators have chosen compliance over litigation. Dream Sports, parent of Dream11, has halted paid contests and shifted to free-to-play formats, potentially incurring a 95% revenue loss.
I think the government has made it clear that they don’t want this right now. I don’t want to live in the past. We want to focus entirely on the future and not fight with the government on something that they don’t want. We have enough capital to sustain our team for the next few years. There will be no layoffs.
Flutter Entertainment has shuttered its Junglee platform, a move that could lead to a $100 million loss. Other companies, including Zupee, Moonshine Technology (PokerBaazi), and Gameskraft, have suspended cash-based services and opted against legal action.
Stakeholders are keenly watching to see how A23’s petition will play out. A favorable ruling might secure exemptions for skill-based games, enabling platforms to resume operations and protect revenue. Conversely, an upheld ban could push companies toward non-monetary models like social gaming and dissuade any future legal challenges.
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