Karnataka High Court seeks Centre’s response to plea challenging Online Gaming Bill

The Karnataka High Court on Saturday sought the Union government’s response to a plea for challenging the validity of the Promotion and Regulation of Online Gaming Bill, 2025, which bans online money games such as rummy and poker [Head Digital Works Vs Union of India].

The petition was filed by Head Digital Works Private Limited, one of the largest online gaming operators in the sector.

Justice BM Shyam Prasad issued notice to the Union and directed that the matter be taken up on September 8 at 2:30 PM when the prayer for interim relief will be considered.

Senior Advocates C Aryama Sundaram and Dhyam Chinappa, who appeared for the company, argued that the legislation, though titled as one for the “promotion” of online gaming, effectively imposes a blanket prohibition.

“The challenge is to an Act which is ironically for promotion of online gaming. I am seeking an interim order … We are talking about employment,” Sundaram submitted, warning that sudden closure of the industry would cause a “huge backlash.”

He urged that the government be directed not to notify the law until the Court has examined the matter.

Solicitor General (SG) Tushar Mehta and Additional Solicitor General N Venkataraman represented the Union of India. SG Mehta contended that this was the first time a court would test the parliament’s competence to legislate on gaming with money.

“Once the President of India has assented, notifying is a Constitutional function. Judiciary would not prevent [it] without even examining,” Mehta told the Court, while not opposing issuance of notice.

On being asked whether there is a chance that law would be notified immediately, the Solicitor General said he would need instructions on that but acknowledged that a notification was possible.

The Promotion and Regulation of Online Gaming Act, 2025 is the first central legislation to impose a nationwide prohibition on online games played for stakes.

The Bill was introduced in the Lok Sabha on August 20, passed by voice vote in both Houses within two days, and received Presidential assent on August 22.

The law criminalises offering or playing online money games, irrespective of whether they are games of skill or chance, with offences classified as cognisable and non-bailable.

Head Digital Works Private Limited, which operates the A23 platform, moved High Court challenging Sections 2(1)(g), 5, 6, 7 and 9 of the 2025 Act.

According to the company, these provisions impose a blanket prohibition on online skill games such as Rummy and Poker by classifying them alongside gambling.

The plea contends that this amounts to an infringement of Articles 14, 19(1)(a), 19(1)(g), 21 and 301 of the Constitution.

As per the petitioner, the parliament lacks legislative competence to enact such a prohibition and that the law disregards binding Supreme Court and High Court precedents which have consistently recognised skill games as legitimate business activities protected under Article 19(1)(g).

Head Digital Works also highlighted the economic fallout of the law. It employs over 600 staff across multiple cities, claims the wider sector provides livelihoods to nearly two lakh people, and points to ₹1,643 crore in GST paid since the inception of the tax, including ₹687 crore in 2024–25.

Further, the company argued that the abrupt prohibition endangers investments of nearly ₹23,440 crore, including foreign capital, and undermines ongoing CSR initiatives.

The Petition has been filed by Keystone Partners Pradeep Nayak and Sankeerth Vittal.