A23 becomes first gaming company to challenge India’s online money gaming ban
The company has filed a petition with the Karnataka High Court, arguing that the law unfairly classifies games of skill such as poker and rummy as gambling.
Key points:
– A23 has filed the first legal challenge against India’s PROG Act 2025, claiming the law unfairly criminalises skill-based gaming operations
– The Karnataka High Court will hear the case on 30 August, while other major gaming companies have not pursued legal action
– The ban targets online money games while exempting esports and subscription-based games, amid industry warnings of significant job losses and company closures
Head Digital Works, the company behind A23 Rummy Online and A23 Poker Online applications, has become the first gaming operator to legally challenge India’s new Promotion and Regulation of Online Gaming (PROG) Act, 2025.
The Karnataka High Court is scheduled to hear the case on 30 August 2025.
The company filed its petition with the Karnataka High Court, arguing that the legislation unfairly criminalises skill-based gaming operations.
A23 contends that the new law would force the immediate closure of various gaming companies and represents what they term “state paternalism” in its approach to regulation.
A23’s applications have achieved significant market penetration, with over 10 million downloads and claims of serving more than 60 million players across rummy, fantasy sports and other real-money gaming formats. However, internet security providers such as Fortinet classify the A23 website under gambling categories.
The PROG Act, which received parliamentary approval last week, prohibits all forms of online money games while exempting legitimate video games, esports and subscription-based social games.
The legislation aims to address concerns over financial fraud and gaming addiction, with government estimates indicating that over 450 million people lose approximately RS 20,000 crore ($2.4m) annually through such platforms.
Justice B.M. Shyam Prasad presided over the initial hearing before directing the matter for full consideration. The case represents a significant test of the new legislation’s scope and constitutionality.
Good to know: Other major operators including Dream11 and MPL have not pursued legal action against the Act
The legislation follows broader regulatory actions affecting the sector, including Flutter Entertainment’s suspension of its Junglee Games operations and ongoing Supreme Court proceedings regarding GST classification of online gaming platforms.
Industry bodies warn the ban could result in over 200,000 job losses and the closure of 400 companies.
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