The online money games ban introduced by the Indian government has triggered its first major legal challenge. A23, one of India’s leading gaming platforms known for rummy and poker, has approached the Karnataka High Court, calling the ban unconstitutional when applied to skill-based games.
Why Did the Government Ban Online Money Games?
The Indian government recently passed a law banning money-based online games, arguing that they fuel addiction and pose social risks. Prime Minister Narendra Modi’s administration stated that it has a responsibility to curb such “social evils.” Gambling was already heavily restricted in India, but the new legislation goes a step further by targeting real-money games, even if they involve skill.
A23’s Argument Against the Ban
In its court filing, A23 claimed that the online money games ban unfairly punishes legitimate businesses. The company argued that skill-based games like rummy and poker are not gambling and should not be restricted. According to A23, the new law could shut down multiple gaming platforms overnight, threatening jobs, investments, and the growth of India’s gaming sector.
The company described the law as a “product of state paternalism” and requested the court to strike it down when applied to games of skill.
The Impact on India’s Online Gaming Industry
The ban has shaken India’s fast-growing online gaming market, which was expected to reach $3.6 billion by 2029. Major players such as Dream11 and Mobile Premier League (MPL) have already suspended money-based games.
- MPL has chosen not to challenge the law, instead shifting its focus to free-to-play games.
- Dream11, despite losing nearly 95% of its revenue, has also decided against filing a legal case. Its CEO stated that the company now plans to expand into AI-driven sports and creator-led platforms.
A23, however, stands apart by taking the legal route, making it the first gaming firm to openly challenge the government on this issue.
What’s Next for Online Money Games in India?
With millions of players and heavy investments from global firms like Tiger Global and Peak XV Partners, the future of India’s online gaming sector now hinges on legal outcomes. If A23 succeeds, it could open the door for other companies to contest the ban and push for a clear distinction between gambling and skill-based games.
Until then, the online money games ban continues to reshape the industry, leaving both players and gaming firms uncertain about what comes next.