A23 has become the first gaming operator to challenge India’s newly imposed ban on real-money online gaming in the country.
Head Digital Works, the parent company of A23, has launched a legal challenge against the new legislation in the Karnataka High Court in southwestern India.
The petition filed on August 28 by Head Digital Works was not made public but was reviewed by news agency Reuters.
What Is The basis Of A23’s Petition?
A23 offers online casino games poker and rummy, which it argues call for elements of skill and not chance.
In the court filing, Head Digital Works say the Promotion and Regulation of Online Gaming Bill, 2025, “criminalises the legitimate business of playing online games of skill, which would result in the closure of various gaming companies overnight.”
It goes on to state that the law is a “product of state paternalism” and is calling for the legislation to be declared unconstitutional in respect of skill-based games such as poker and rummy.
The Promotion and Regulation of Online Gaming Bill, 2025, became law last Friday (August 22) after being proposed and passed all within a week, and the fallout was immediate.
It has outlawed all real-money online gaming in the country, affecting existing businesses just as much as it will prevent new operators from starting up.
Lost Revenues In The Hundreds Of Millions
Flutter withdrew its gaming platform Junglee from India in response to the new legislation, claiming that the closure would result in a loss of around $100 million in revenue this year.
Chief Executive Peter Jackson said: “I am extremely disappointed with the sudden changes to the regulatory landscape in India.
“Over the last four years Junglee has invested significantly in its local market, building a workforce of over 1,100 employees to deliver innovative skill-based gaming products to Indian customers.
India’s biggest online gaming platform Dream 11 was forced to withdraw its $41 million cricket sponsorship from India’s national teams as its fantasy sports offering pivoted to become free-to-play as a result of the ban.
A statement from Dream11 read: “We have always been and will always be a law abiding company, and have conducted our business in compliance with the laws.
“While we believe that progressive regulations would have been the right way forward, we will respect the law and will fully comply with “The Promotion & Regulation of Online Gaming Law, 2025”.
Dream11 CEO Harsh Jain appeared on CNBC TV 18 earlier this week and said that because of the new law, “95% of our group’s revenues have disappeared overnight.”
The Mumbai-headquartered business posted revenue of around $760 million in FY2023.
Jim Munro is a betting industry and gambling expert who has been a national newspaper journalist for over 30 years, predominantly at The Sunday Times and The Sun, where he wrote a weekly soccer betting column. Jim also worked on the launch of Virgin Bet with Gamesys and was subsequently head of editorial at LiveScore, the sports media and betting group.
