Head Digital Works, the operator of A23 Rummy Online and A23 Poker Online, has filed a legal challenge against India’s new Promotion and Regulation of Online Gaming (PROG) Act, 2025. This makes A23 the first gaming company to contest the legislation.
Case Moves to Karnataka High Court
The Karnataka High Court will hear the petition on 30 August 2025. A23 argues that the Act unfairly criminalises skill-based gaming, calling the approach “state paternalism.” The company warns the law could trigger the immediate shutdown of multiple gaming operators.
Market Impact
A23 has built a strong footprint in India with over 10 million downloads. They claim 60 million players across rummy, fantasy sports, and real-money gaming. However, cybersecurity firms like Fortinet still classify the platform as gambling.
The PROG Act, passed by Parliament last week, bans all online money games but exempts video games, esports, and subscription-based social games. Authorities defend the law as necessary to curb financial fraud and addiction. They estimate that more than 450 million people lose about ₹20,000 crore ($2.4m) annually through such platforms.
Wider Industry Response
While other major operators like Dream11 and MPL have not taken legal action, industry groups caution that the ban could wipe out 400 companies. Furthermore, it could cost over 200,000 jobs.
The legislation comes amid wider crackdowns, including Flutter Entertainment’s suspension of Junglee Games. There are also ongoing Supreme Court hearings on GST classification for online gaming.
Next Steps
Justice B.M. Shyam Prasad oversaw the initial hearing and has referred the matter for full consideration. The case is now seen as a landmark test of the PROG Act’s constitutionality and its potential impact on India’s booming gaming sector.
