A23 Challenges India’s Controversial Gaming Ban

A week ago, India passed a fresh bill that outlines a full ban on online money-based games, effectively ending the local skill games industry overnight. This controversial decision met fierce opposition from the industry, which has finally struck back.

India Ended Gaming with a Sweeping Bill

While India has had a strict prohibition of online gaming for years, companies offering real-money games featuring an element of skill have largely been able to operate without problem. Products, such as online rummy and poker, have avoided being classified as games of chance, allowing many locals to enjoy them.

Despite that, the skill-based games’ real-money element has still caused harm among some people, attracting staunch criticism. This criticism culminated with PM Narendra Modi’s government passing a bill that prohibits all online money-based games. The measure passed mere days after its introduction, attesting to the pent-up opposition to such products.

The ban, however, sent shockwaves across the skill-based gaming industry, causing significant trouble for many companies. The future of an industry estimated to be worth $3.6 billion by 2029 was suddenly enshrouded by doubt, with many companies exiting the market or canceling their sports sponsorship deals.

A23 Questions the Constitutionality of the Ban

As reported by Reuters, Indian gaming company A23 has challenged the recent ban in court, arguing against the ban’s drastic approach and sudden nature. On August 28, the company reportedly filed a complaint in the High Court of Karnataka, describing the new ban as a “product of state paternalism” and a measure that would have a devastating effect on an industry that has been legal for years.

A23, which is the first online gaming operator to challenge the new ban, wants the measure to be declared “unconstitutional” when applied to games of skill. As of the time of this writing, the Indian government has yet to issue a statement on the matter or respond to Reuters’ queries.

A23, for context, is one of the bigger players in India’s online gaming market, boasting some reported 70 million players. Although the platform was the first to challenge the new law, it is not the first to weigh in on the ban.

Dream11, one of the top platforms, was recently forced to shut down its real-money gaming division and switch to a free-to-play model instead. While the company has expressed commitment to complying with the law, it has regretfully pointed out that 95% of its revenues have disappeared overnight.

The Mobile Premier League, a fantasy cricket app, has likewise had to discontinue its real-money products.

Flutter Entertainment, meanwhile, was forced to halt its Junglee brand. However, the company has indicated that it is “evaluating options to restore skill-based games in the Indian market.”