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India’s Online Money-Gaming Ban Faces First Court Test as A23 Petitions Karnataka High Court

The company says Parliament erased the long‑standing skill–chance distinction, criminalizing legitimate businesses, with an urgent hearing set for August 30.

Overview

  • The Promotion and Regulation of Online Gaming Act, 2025 became law on August 22, banning all real‑money online games regardless of whether they involve skill or chance.
  • Violations carry up to three years’ imprisonment or fines up to Rs 1 crore, with separate penalties for advertising and a bar on banks and payment providers from facilitating transactions.
  • Head Digital Works’ petition challenges sections defining “online money games” and prohibiting operations, advertising and payments, arguing violations of constitutional rights under Articles 14, 19, 21 and 301.
  • Justice B. M. Shyam Prasad indicated the matter will be heard on August 30, as major platforms including Dream11, MPL and PokerBaazi have already suspended cash contests.
  • Industry reactions have diverged, with some companies declining to sue and pivoting to free‑to‑play, while developers formed the IGPDA supporting the Act and a new Authority to register and oversee non‑money games.