The Karnataka High Court will hear on August 30 a petition filed by online gaming major A23, operated by Head Digital Works, against the ‘Promotion and Regulation of Online Gaming Bill, 2025’ which has banned real money gaming in the country.

The development was first reported by Bar & Bench. Inc42 has reached out to Head Digital Works for additional comments on the development.

The Bill, which was passed by the Parliament last week, got President Droupadi Murmu’s assent on August 22. The Bill outlaws all money-based online games, whether based on skill or chance, ending the long-standing legal distinction between the two.

Offenders may face up to three years in jail and fines of up to INR 1 Cr, with harsher penalties for repeat violations. Banks and payment providers are also barred from supporting such transactions.

The real money gaming ban has widened the existing rift within India’s gaming ecosystem. Real money gaming players like Dream11, MPL, WinZO and Games24x7 now find themselves fighting for survival, with valuations and business models evaporating overnight.

But for video game studios and esports companies, the Bill provides a long overdue clarity. For years, both sides of the industry were lumped together under the “online gaming” label. For esports organisers and studios, the ban is now being viewed as a chance to reposition themselves closer to traditional sports and entertainment. Freed from the shadow of what many perceived as gambling, esports tournaments can now appeal more strongly to broadcasters, advertisers and live audiences.

Game studios also believe the new law opens up the possibility of building original Indian IPs that can act as cultural exports.

Notably, the Bill also proposes creating a new authority to certify which games qualify as non-money games.

(The story will be updated soon)

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