Karnataka HC to likely hear plea challenging validity of Online Gaming Act 2025 on August 30

Bengaluru: The Karnataka High Court is likely to hear on August 30, a petition challenging the constitutional validity of the Promotion and Regulation of Online Gaming Act, 2025. The President had accorded assent to the new legislation on August 22.

The petition is filed by Head Digital Works Private Limited, New Delhi, which operates the gaming application and website A23. The petition challenged sections 2(1)(g), 5, 6, 7, and 9 of the Act.

On Thursday, senior advocates Aryama Sundaram and Dhyan Chinnappa mentioned the filing of the petition before Justice BM Shyam Prasad. The court indicated that it would be listed on Saturday.

According to the petition, Section 2(1)(g) of the Act attempts to blur the distinction between games of skill and games of chance in defining 'online money game', a distinction recognised under the Constitution.

The petitioners claimed that this disregard is an arbitrary action. The definition was deemed overbroad, encompassing all online games involving monetary stakes, the petition said.

The petition said that section 5 prohibits offering online money games and services. This invariably restricts the petitioner from practising their profession and violates their rights.

In addition, section 6 bans advertising related to online money games, specifically skill-based games, infringing on the right to free speech under Article 19(1)(a) and the right to promote one's own legitimate business under Article 19(1)(g) of the constitution, the petition stated.

The petition said that the legislation was enacted without prior consultation with sector stakeholders with millions engaged in online gaming. Imposing an immediate prohibition on the industry is manifestly arbitrary, the petitioners said.

The petitioners claimed that legislation is a sudden policy reversal. The petition said that recently online gaming was recognised as part of the 'digital economy'.

Among the other initiatives were GST measures on online gaming, interactions between the Prime Minister and notable gamers, the creation of an Inter-Ministerial Task Force to regulate and promote the sector and support for start-ups under the 'Digital India' and 'Startup India' programmes, the petition said.