A23 parent files first legal challenge to India’s new online gaming law

Head Digital Works, the operator of rummy and poker platform A23, has filed a petition before the Karnataka High Court challenging the newly enacted Promotion and Regulation of Online Gaming Law, 2025.

The law, passed by Parliament on August 21, imposes a blanket prohibition on all forms of online money games while encouraging e-sports and social gaming. In its filing, A23 argued that the legislation effectively criminalises skill-based games such as rummy and poker, putting legitimate businesses at risk of immediate shutdown. 

The company urged the court to declare the law unconstitutional in its application to games of skill. As per the Karnataka High Court’s schedule, the petition will be heard on August 30.

Entrackr has reached out to A23 for more details.

This marks the first formal legal challenge to the new law, even at a time when market leaders Dream11 (Dream Sports) and Gameskraft have officially decided not to challenge it.

The move by A23 may trigger more petitions in the coming days, as there is a long list of now-shut real-money gaming platforms, including My11Circle, WinZO, Zupee, Probo, Paytm First Games, and Nazara Technologies-backed PokerBaazi.

Meanwhile, some of these companies have already announced their entry into new verticals. For context, Dream11 launched the wealth management app Dream Money, while WinZO introduced WinZO TV, a microdrama platform.

While some stakeholders support the move citing risks of addiction and financial fraud, industry bodies such as the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and Federation of Indian Fantasy Sports (FIFS) have urged the government to reconsider, warning that blanket restrictions on skill-based formats could choke innovation and erode investor confidence in one of India’s fastest-growing digital industries.