India's government banned online money-based games. The industry contends many games rely on skill rather than chance. A23, offering rummy and poker and reporting over 70 million players, filed in the High Court of Karnataka on August 28 seeking a declaration that the law is unconstitutional as applied to skill games, arguing it criminalises legitimate businesses and could force companies to close overnight. The law prompted sudden shutdowns and led apps such as Dream11 and Mobile Premier League to discontinue money play. MPL declined a legal challenge and urged a shift toward free-to-play models. Industry estimates projected a $3.6 billion valuation by 2029.
Indian gaming company A23 has challenged the government's ban on online money-based games, a legal filing shows, in the first case against a law that led to the sudden shutdown of popular contests and has thrown the industry's future into doubt. Prime Minister Narendra Modi's government issued a law last week to ban such games, which the industry says rely on skill and are therefore not gambling.
A23.com describes itself as an online gaming platform with more than 70 million players. Endorsements by leading Indian cricketers and other marketing efforts have boosted the appeal of apps such as Dream11 and Mobile Premier League, where virtual cricket teams are created based on real players, earning points on runs, wickets and catches. Both apps have discontinued their money games after the ban.
In a court filing at the High Court of Karnataka in southwestern India, A23, which offers rummy and poker games, said the law "criminalises the legitimate business of playing online games of skill, which would result in the closure of various gaming companies overnight". The new law is a "product of state paternalism", A23 added in its filing, asking it to be declared unconstitutional when applied to games of skill such as rummy and poker.
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