New Delhi Firm Challenges Karnataka’s Online Gaming Ban; Hearing Set for August 30

Quick Summary

• Head Digital works Pvt. Ltd., operator of the online gaming platform A23, has filed a petition in Karnataka High Court challenging the constitutional validity of the Promotion and Regulation of Online Gaming Act, 2025.
• The Act bans all online Real Money Games (RMGs), whether games of skill, chance, or both, and prohibits banks or financial institutions from facilitating transactions related to such games.
• Violations under the Act are classified as cognisable and non-bailable offenses.
• The company argues that banning games of skill like rummy and poker is contrary to legal principles established by the Supreme court under Article 19(1)(g), which protects legitimate business activities.
• Similar laws enacted by state governments in Karnataka,Tamil Nadu,and Kerala were previously struck down by respective high courts.
• petitioners claim the ban disrupts livelihoods for over two lakh employees across India’s gaming sector and leads to a financial loss exceeding ₹23,440 crore for stakeholders.

Indian Opinion Analysis

The legal challenge raised against India’s newly enacted Promotion and Regulation of Online Gaming Act signals persistent regulatory uncertainty surrounding online skill-based gaming. The petitioner points out meaningful economic consequences for industry stakeholders-including significant losses in investment-and job disruption affecting lakhs of employees.

Additionally, invoking Article 19(1)(g) raises questions about whether skill-based games can be legitimately excluded from lawful commerce.Prior judicial precedents disallow outright bans on such activities when categorized as “games of skill,” creating tensions between federal adjudication trends versus recent attempts at centralized regulation.If upheld constitutionally, this law could set a transformative precedent regarding regulation in India’s burgeoning digital economy impacting sectors reliant on monetized entertainment platforms. In contrast, striking it down woudl reassert states’ legislative primacy over similar domains while cementing earlier interpretations supporting industries built around skilled gaming formats.

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