The Karnataka High Court will today, August 30, hear a petition against the newly enacted Promotion and Regulation of Online Gaming Act, 2025. The plea has been filed by a New Delhi-based online gaming company challenging the constitutional validity of the law.
The case was mentioned before Justice BM Shyam Prasad by the petitioners’ lawyer on Thursday, seeking an urgent hearing. The judge agreed and fixed the matter for today.
Petitioners say law threatens jobs and investments
According to the petition, the new Act effectively shuts down the entire skill-based gaming sector. The petitioners – Head Digital Works Private Limited and another firm, argued that this will not only impact the freedom of players to engage in games of skill but also lead to massive job losses and wipe out years of investment in the industry.
The plea challenges Sections 2(1)(g), 5, 6, 7, and 9 of the Act. These provisions ban online games of skill such as rummy and poker, bar banks and financial institutions from processing payments for any online money gaming service and make violations a cognisable and non-bailable offence.
Conflict between state and centre’s stand
The petitioners pointed out that the Union government had earlier told the Madras High Court that states have exclusive power to regulate online skill games.
They also cited a statement made in Parliament on March 26, 2025, where the Centre said banning online gaming lies within the jurisdiction of states, not the central government.
The petition, filed by Head Digital Works CEO Siddharth Sharma and Sumeet Singh Nindrajog from Mumbai, argued that the Act criminalises all online games played with stakes, whether skill-based or chance-based. It alleged that the law was passed without proper consultation or debate.
The petitioners warned that the sudden ban has already disrupted the jobs of 606 of their employees and risks the livelihoods of over two lakh people in the sector. They claimed that more than Rs 23,400 crore worth of investments could be lost because of the new law, according to a report by The New Indian Express.