Head Digital Works has challenged the new Online Gaming Act, 2025 in the Karnataka High Court, arguing that banning Rummy and Poker violates constitutional rights. The company says the prohibition endangers jobs, tax revenue and over Rs 23,000 crore in industry investments.
Bengaluru: Head Digital Works Private Limited, the parent company of the A23 gaming platform, has filed a petition before the Karnataka High Court challenging the Promotion and Regulation of Online Gaming Act, 2025.
The new Central law bans all online games played for money, including Rummy and Poker, which courts have previously recognised as games of skill.
The company has said that the law is
“unconstitutional, against judicial precedents and damaging for employment, tax revenue and investment in India’s gaming sector.”
The Act was cleared with unusual speed. The Union Cabinet approved it on August 19, it was introduced in the Lok Sabha on August 20 and passed by voice vote within minutes. The Rajya Sabha cleared it on August 21, and it received Presidential assent on August 22.
Under the new law, playing or offering any online money game is a cognisable and non-bailable offence. This means even skill games are treated like gambling.
What the Company Has Argued
Head Digital Works has said that the government made this “sudden shift” without public consultation or parliamentary committee scrutiny, despite having earlier supported a regulatory framework through the Information Technology Rules, 2021.
The plea challenges Sections 2(1)(g), 5, 6, 7 and 9 of the Act, arguing that they wrongly impose a blanket prohibition on skill-based games played for stakes.
According to the petition, Parliament “lacked legislative competence” to pass such a law. It also argues that the Act violates fundamental rights under Articles 14, 19(1)(a), 19(1)(g), 21 and 301 of the Constitution.
The company has pointed out that the Supreme Court and several High Courts have consistently ruled that games like Rummy and Poker involve skill and are not gambling. By ignoring this jurisprudence, the 2025 Act has effectively criminalised a lawful business already protected by Article 19(1)(g).
Industry Impact
The plea also stresses the impact on jobs and investments. Head Digital Works, which has offices in Hyderabad, Bengaluru and other cities, employs over 600 staff members. It says the wider online gaming sector supports around two lakh people in technology, design, animation and customer support.
The company highlighted its tax and CSR contributions: more than Rs 1,643 crore in GST since the tax was introduced, including Rs 687 crore in 2024–25 alone, and about Rs 12 crore spent on corporate social responsibility projects.
It has further warned that the sudden ban puts at risk nearly Rs 23,440 crore of investments, including a significant share from foreign investors.
Past Court Rulings
This is not the first time online skill games have been in legal dispute. In 2022, the Karnataka High Court struck down amendments to the Karnataka Police Act that tried to ban online skill games.
The Madras High Court, in Junglee Games v. State of Tamil Nadu and All India Gaming Federation v. State of Tamil Nadu, struck down Tamil Nadu’s prohibition on Rummy and Poker. Similarly, the Kerala High Court set aside a notification banning online Rummy for stakes.
All three states appealed these rulings, and the Supreme Court has already reserved its judgment.
Despite this, the Centre went ahead with the 2025 law, which, according to the company, ignores these “binding pronouncements” and contradicts its own earlier stand in court that regulation of skill games falls within the power of States.
Background: The Online Gaming Debate in India
Online gaming has become a fast-growing sector in India over the past decade, with real-money games like Rummy, Poker, Fantasy Sports and Ludo attracting crores of users. Supporters argue that such platforms create jobs, contribute large amounts in GST, and attract foreign investment.
However, governments have repeatedly raised concerns over addiction, financial losses, and social harm caused by money-based games. Several States, including Tamil Nadu, Telangana, Andhra Pradesh and Kerala, have attempted blanket bans on skill games in the past, but most of these were struck down by High Courts.
The Supreme Court has recognised in earlier cases that “games of skill are business activities protected under Article 19(1)(g) of the Constitution.” But at the same time, it has left the door open for reasonable regulations.
Now, with the 2025 Central law, the debate has shifted to whether Parliament itself can impose such a total ban, overriding earlier State-level attempts.
What the Petition Seeks
Through its plea, Head Digital Works has urged the Karnataka High Court to reaffirm that Rummy and Poker are legitimate skill-based activities and remain protected business under Article 19(1)(g).
It wants the Court to strike down the key provisions of the 2025 Act and ensure that the industry is not equated with gambling.
