Legal Showdown: Karnataka High Court to Review Online Gaming Ban

Head Digital Works, the company behind 'A23 Rummy', has filed a petition in the Karnataka High Court challenging the newly enacted Central Act that bans money-based online games. This marks the first legal challenge to the Promotion and Regulation of Online Gaming Act, 2025.

The Act, passed by both houses of Parliament and signed into law on August 22, bans 'online money games', imposes restrictions on banking services and advertising related to these games, and extends prohibitions to platforms outside India. The High Court will hear the petition on August 30.

The legislation defines 'online money gaming' as games requiring a submission of fees or stakes in exchange for monetary rewards. E-sports and online educational or recreational games, however, remain exempt. Violations could lead to imprisonment, substantial fines, or both. The law also establishes a Central Authority to regulate and potentially block non-compliant websites and platforms.

(With inputs from agencies.)