Real-money gaming ban triggers split in industry response: Legal challenge vs compliance

The ban on real-money gaming (RMG) has split the industry in two. Most companies are accepting the new law, but one major player has taken the fight to the Karnataka High Court, challenging the legislation.

Last week, President Droupadi Murmu signed the Online Gaming Regulation Bill, 2025, banning all online real-money games, whether based on skill, chance, or both. Following this, major platforms like Dream11, MPL, WinZO, and PokerBaazi have shut down their real-money gaming offerings.

The government says the ban aims to stop fraud, money laundering, and terror financing while supporting the growth of e-sports and social gaming.


RMG companies’ legal stance

Here is what some companies have said about their legal stance on the matter:

A23: Head Digital Works, which owns India’s top online gaming platform A23, has become the first RMG operator to officially contest the law by filing a petition in the Karnataka High Court. The case is scheduled for a hearing on August 30.

A23, known for its rummy and poker offerings, argued 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 petition was reviewed by Reuters.

The company also called the law a “product of state paternalism” and urged the court to declare it unconstitutional when applied to games of skill like rummy and poker.

Dream Sports: Dream Sports, the parent company of fantasy sports leader Dream11, has said it will not challenge the government's real-money gaming ban, ending speculation that it might move court against the new Act.

As reported by ET, the law has wiped out 95% of Dream Sports’ revenue and 100% of its profits, effectively signalling the end of the real-money gaming industry in India.

Founder Harsh Jain stated the company would not waste its “energy” fighting the legislation, adding that they would reconsider their position only if there are future changes to the regulation.

Gameskraft: Gameskraft has also decided not to take legal action against the new law. Instead, it will focus on planning a future that follows the latest rules.

The company said it had halted all real-money ‘Gameplay’ and ‘Add Cash’ services on its rummy platforms as of August 21. The company said that moving forward, its attention will be on exploring new opportunities that fit within the new legal framework.

Mobile Premier League (MPL): According to a report by Reuters, MPL has chosen not to challenge the law either. The company has advised the industry bodies it is part of to focus on free-to-play models instead.

Broader concerns

The introduction of the new law has raised major concerns about its effect on jobs and investment in India’s gaming industry.

Currently, the online gaming sector employs over 200,000 professionals across more than 400 startups and has attracted Rs 25,000 crore in foreign direct investment (FDI). Industry leaders have warned that the Act could severely damage foreign investor confidence and lead to the government losing an estimated Rs 20,000 crore in taxes.

Priyank Kharge, Karnataka’s minister for IT and biotechnology, pointed out that more than 2,000 gaming startups and over two lakh jobs in areas like IT, artificial intelligence (AI), and design are now in danger.

Moreover, it’s not just tech companies and professionals feeling the impact, but several Bollywood celebrities and sports stars too, who had endorsed real-money gaming platforms, are now distancing themselves from the industry altogether.

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