Informist, Saturday, Aug. 30, 2025

NEW DELHI – The Karnataka High Court on Saturday issued a notice to the Centre on a petition by Head Digital Works Pvt. Ltd, which operates India's marquee gaming brand 'A23', against the government's "complete ban" on online money gaming in India. The high court asked the Centre to file its response till the next date of hearing on Sept. 8, at least on the interim prayer made by the petitioner seeking the government to not notify the Promotion and Regulation of Online Gaming Act, 2025.

Last week, President Droupadi Murmu gave her assent to the 2025 law on online money gaming, however, it is still to be notified by the government in the official gazette. The act, imposing a complete ban on online money games, applies to games of chance, games of skill, and those that combine both. The Act prohibits advertising and promotion of such games and financial transactions related to these platforms cannot be processed by banks or payment systems. Further, the authorities will also be empowered to block access to unlawful platforms under the Information Technology Act, 2000.

On Saturday, the petitioner sought an interim order for directing the government to not notify the 2025 Act till the high court was hearing its plea. "We are talking about employment of lakhs of people, GST (goods and services tax) collections of lakhs of crores. It is my concern that if this industry is closed overnight there would be a huge backlash. Let them (the government) file a reply, let them not notify it. Let them let me know in advance when they notify it," said the petitioner's lawyer C. Aryama Sundaram.

On a question whether there was any possibility of immediate notification by the government, the Solicitor General of India Tushar Mehta said there can be a notification and he has to seek instructions from the Centre regarding it. "This is the first time where the court will be examining the competence of Parliament on gaming with money. I cannot oppose issuance of notice. Once the President of India has assented, notifying is a Constitutional function. The judiciary would not prevent it without even examining the law," said Mehta.

The petitioner said that the ban was against the Article 19(1)(g) of the Indian Constitution, which grants all citizens the fundamental right to practice any profession, occupation, trade, or business. Further, the petitioner argued that the ban on online money games was against the Right to Equality under Article 14 as it was being given discriminatory treatment, where similar physical format games were untouched. The petitioner said that the ban would cause a potential loss of over 200,000 jobs, INR 310 billion in annual revenues and over INR 200 billion in tax contributions.

Under the act, strict punishments have been introduced such as offering or facilitating online money games can lead to imprisonment of up to three years and a fine of up to INR 10 million. Further, financial transactions linked to these games are also punishable with similar penalties. Advertising such games can attract a jail term of up to two years and a fine of up to INR 5 million under the act. Repeat offenders face harsher punishments, including imprisonment of up to five years and fines of up to INR 20 million. Offences under key provisions will be cognisable and non-bailable, which means police can arrest without a warrant and bail is not a right.

According to the government, the rapid spread of online money games has created serious risks for individuals, families and the nation. While digital technology has brought many benefits, these games have exploited loopholes in the law and caused deep social harm, said the government. The government said that according to an estimate, 450 million people were negatively affected by online money games and faced a loss of more than INR 200 billion because of it. The government said that it has acted to close these gaps and protect citizens.

The online money gaming segment involves games where financial stakes are involved, whether based on chance, skill, or a combination of both. These platforms have raised serious concern due to reports of addiction, financial losses, money laundering, and even cases of suicide linked to heavy monetary losses, said the government. End

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.