Key Moments:
- Head Digital Works, parent of A23, has initiated a legal challenge against the Promotion and Regulations of Online Gambling Bill 2025.
- Major operators, including Dream11 and Flutter’s Junglee, have suspended real money gaming offerings in India following the ban.
- The $3.7 billion Indian gaming sector, projected to reach $9.1 billion by 2029, now faces deep uncertainty and industry-wide disruptions.
Legal Battle Takes Center Stage
India’s recent prohibition on real money gaming has ignited its first courtroom dispute, setting the stage for what could become a wider industry campaign against new regulations. Head Digital Works, the company behind A23, has filed a petition with the High Court of Karnataka, challenging the Promotion and Regulations of Online Gambling Bill 2025. In its plea, the company labeled the legislation as “a product of state paternalism,” asserting that it unfairly criminalizes skill-based gaming and would result in the abrupt closure of gaming businesses, job losses, and investor uncertainty.
#WATCH | India’s first legal challenge to the online money games ban: A23 moves Karnataka HC, argue skill-based games like rummy & poker shouldn’t be banned.
Sameer Dixit with more!#OnlineGamingBill2025 #gamingbill @sameerdixit16 pic.twitter.com/6rIxFgikxy
— ET NOW (@ETNOWlive) August 28, 2025
Industry Voices Collective Dissent
The industry’s response has been swift and coordinated. Leading trade associations—the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS)—have all sent formal letters to Home Minister Amit Shah, emphasizing the significant economic consequences of the ban.
The India Gaming Report 2025 valued the industry at $3.7 billion, with forecasts to reach $9.1 billion by 2029. With such rapid growth projected, the abrupt regulatory shift has caused concern for both local and international stakeholders.
Operators Halt Operations Amid Regulatory Shock
Faced with the new law, leading companies have halted their main business activities. Dream11, a major domestic operator, has pulled its real money gaming products, while Flutter has ceased operations of Junglee in India. Flutter previously anticipated Junglee would generate $200 million in revenue and $50 million in adjusted EBITDA for 2025.
Flutter’s management publicly criticized the lack of consultation before the decision, highlighting their record in responsible gaming and pointing to the workforce of over 1,100 employees in India and efforts on consumer protection initiatives. Nevertheless, the legislation has left no viable operating path for these businesses, compelling them to close high-performing segments almost instantly.
| Company | Action Taken | Anticipated Financial Impact |
|---|---|---|
| Dream11 | Withdrew real money gaming products | 95% revenue loss (reported by CEO Harsh Jain) |
| Flutter (Junglee) | Ceased Indian operations | $200m revenue and $50m adjusted EBITDA expected for 2025 no longer achievable |
| A23 | Pursuing legal action | Uncertain, pending court decision |
Different Strategies Emerge
While A23 is challenging the law in court, Dream11 has decided against pursuing legal action but has acknowledged significant financial harm. CEO Harsh Jain revealed that 95% of the company’s revenue vanished overnight as a result of the ban. Despite the setback, Dream11 is placing renewed focus on non-real money gaming projects, such as Fancode and Sportz Drip, though analysts remain skeptical these efforts will match prior revenue levels.
Wider Implications for Policy and Market
The government has justified the sweeping measure as a way to address addiction and unlawful betting, citing the increased authority of the GST enforcement agency to block non-compliant gaming firms. Industry observers, however, describe the pace and scale of the prohibition as reminiscent of past regulatory shocks experienced by India’s technology sectors, with a much larger financial impact due to the sheer scale of stakeholders in gaming.
Looking Ahead: The Path Forward
The current legal petition from A23 represents only the first in what many believe will be a series of formal challenges. With the potential for billions in industry growth now in question, more operators and industry associations are likely to push back against the new rules.
The real money gaming landscape in India now faces a period of major uncertainty. All eyes are on the High Court of Karnataka, as its ruling will likely determine whether the government’s tough approach will stand or whether a path forward for a regulated market will be permitted.
- Author
Daniel Williams
