The government’s recent move to ban online money-based games is facing its first legal challenge. According to Reuters, Indian gaming company A23 has filed a case in the High Court of Karnataka, questioning the constitutionality of the new law. The law was announced last week and led to the shutdown of popular online gaming apps.
The government introduced the law to stop online money-based games, which the industry argues rely on skill rather than chance and should not be considered gambling. Gambling has long been highly restricted in India.
A23, which offers rummy and poker games, said in its court filing that the new law “criminalises the legitimate business of playing online games of skill, which would result in the closure of various gaming companies overnight.” The company also described the law as a “product of state paternalism” and asked the court to declare it unconstitutional for games of skill like rummy and poker.
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A23.com claims to have more than 70 million players on its platform. Endorsements from top Indian cricketers, along with other marketing strategies, have increased the popularity of apps like Dream11 and Mobile Premier League. These platforms let users create virtual cricket teams based on real players, earning points for runs, wickets and catches. Both platforms have suspended money-based games following the ban.
While A23 is challenging the law, other major players are taking a different approach. MPL has chosen not to pursue a legal challenge and is instead advising industry groups to focus on free-to-play models, a senior source told Reuters.
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Similarly, Dream11 will not challenge the law, despite CEO Harsh Jain revealing that 95 percent of the group’s revenues have vanished overnight.
The government has repeatedly expressed concerns about money-based games, emphasising its duty to act against “social evils” and prevent addiction.