Gaming
From Valsad to SC: Justice Pardiwala holds fate of $3 billion gaming industry, 2 lakh jobs
Karnataka HC may become key battleground as RMG firms explore legal options
The industry is currently finalizing its legal strategy, which is expected to be implemented once the law receives Presidential assent and is officially notified.
Another RMG operator echoed the sentiment, noting that the state’s political climate appears more receptive to the sector.
The real money gaming (RMG) industry is gearing up to challenge the central government’s newly passed Promotion and Regulation of Online Gaming Bill, 2025 in the Karnataka High Court, sources familiar with the matter said. The industry is currently finalizing its legal strategy, which is expected to be implemented once the law receives Presidential assent and is officially notified.
On August 12, a division bench of Supreme Court comprising Justices J.B. Pardiwala and R. Mahadevan reserved judgment after concluding arguments in the batch of cases involving leading gaming companies, including Gameskraft, Delta Corp, and members of industry bodies like the All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and the Federation of Indian Fantasy Sports (FIFS).
Karnataka’s IT and Biotechnology Minister, Priyank Kharge, strongly criticized the Bill, warning that a blanket ban on real money gaming would backfire. Taking to social media platform X, Kharge wrote: “Knee-jerk blanket ban on Online Real Money Gaming without consulting stakeholders or states is another masterstroke by Modi Sarkar in bad policy making. A ban kills India’s gaming talent pool and pushes entrepreneurs abroad.”
Kharge argued that such prohibitions would not only result in revenue loss but also push users towards illegal markets, stunting innovation in India’s rapidly growing digital sector.
Industry insiders believe Karnataka presents a favorable battleground for the challenge. A senior executive from a gaming federation said, “It makes sense for the industry because of Karnataka High Court’s previous judgments. This is the right time which will bring the entire industry together and fight for survival.”
Another RMG operator echoed the sentiment, noting that the state’s political climate appears more receptive to the sector. “The recent remarks from Karnataka’s IT Minister showcase the state’s progressive outlook towards the gaming industry,” the operator added.
The industry’s optimism stems from a landmark 2022 case, All India Gaming Federation v. State of Karnataka, where the Karnataka High Court struck down provisions of the Karnataka Police (Amendment) Act, 2021. The law had sought to prohibit online real-money games of skill, but the High Court held that such regulation was outside the legislative competence of states and that imposing an absolute prohibition violated fundamental rights.
The 2021 Amendment had expanded the definition of “instruments of gaming” under the Karnataka Police Act, effectively banning real-money gaming platforms from operating in the state. However, the High Court ruled the provisions unconstitutional, citing disproportionality and the failure to distinguish between games of skill and games of chance.
With the new central legislation now in place, the industry hopes that Karnataka’s earlier judicial stance will strengthen its case. The coming weeks are expected to see a consolidated legal push from RMG operators, federations, and allied stakeholders.
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