Gaming
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Head Digital Works, the parent company of A23, has moved the Karnataka High Court against the recently enacted Promotion and Regulation of Online Gaming Law, becoming the first real money gaming (RMG) operator to formally contest the legislation. The matter is scheduled for hearing on August 30.
The development comes days after Storyboard18 reported that RMG firms were preparing to take their legal fight to Karnataka. According to industry sources, Head Digital Works’ move could set the tone for other operators to follow suit.
Earlier this week, leading firms including Dream11, Gameskraft, PokerBaazi, and Zupee opted against challenging the law, saying they would comply with the legislation passed in Parliament. Head Digital Works’ writ petition now marks a significant departure, with insiders suggesting that “multiple other companies are likely to join” the legal effort.
A senior legal executive familiar with the matter said, “The case is likely to be heard on August 30. With this, Head Digital Works becomes the first RMG operator to challenge the law in court.”
The industry’s confidence in approaching the judiciary is rooted in precedent. In 2022, the Karnataka High Court in All India Gaming Federation v. State of Karnataka struck down key provisions of the Karnataka Police (Amendment) Act, 2021, which had sought to ban online real-money games of skill. The court held that such regulation fell outside the legislative competence of the state and that a blanket prohibition violated fundamental rights.
That amendment had expanded the definition of “instruments of gaming,” effectively outlawing RMG platforms in Karnataka. The High Court, however, ruled the provisions unconstitutional, stressing the importance of distinguishing between games of skill and chance.
With the central government’s new online gaming law now in effect, industry players hope Karnataka’s earlier judicial stance will bolster their arguments. The coming weeks could see a consolidated legal push from RMG operators, federations, and other stakeholders seeking relief from the new regulatory framework.
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