In the wake of the Rajya Sabha passing the Promotion and Regulation of Online Gaming Bill, 2025, the real-money gaming (RMG) industry is preparing to mount a legal challenge, with the Karnataka High Court emerging as a potential key battleground. The industry’s legal strategy is taking shape as companies face a looming nationwide ban on all forms of online money games.
The Bill, which is awaiting presidential assent, makes no distinction between games of skill and chance when a monetary stake is involved, a move that the industry considers unconstitutional. This is not the first time the online gaming sector has found itself in a legal fight in Karnataka. In a landmark 2022 judgment, the Karnataka High Court struck down a state-level law that had attempted to impose a similar ban on online games, declaring it unconstitutional. This precedent, which affirmed the right to carry out a business based on skill, gives the industry confidence that it can challenge the new central law on similar grounds.
Senior executives and legal experts within the gaming industry believe that the new law infringes upon Article 19(1)(g) of the Constitution, which guarantees the right to practice any profession or business. They argue that a blanket ban, which treats skill-based games like fantasy sports and poker the same as gambling, is “arbitrary and disproportionate.”
The industry has also expressed concerns that the ban will lead to the collapse of a sector valued at over ₹2 lakh crore, resulting in the loss of thousands of jobs and a significant drop in tax revenue. According to industry estimates, the sector contributes nearly ₹20,000 crore annually in taxes and employs over two lakh people.
While some companies like Zupee and Probo have already begun to halt their real-money gaming operations in compliance with the new law, others are preparing for a protracted legal battle. The industry is closely watching the outcome of the Supreme Court’s verdict on the Gameskraft GST case, which could provide further clarity on the legal status of skill-based gaming and bolster their challenge against the new law.
The battle in the Karnataka High Court will be a defining moment for the future of online gaming in India, as the industry fights for its survival against a law it believes could stifle innovation and push users toward unregulated offshore platforms.
Key Highlights:
- The RMG industry is preparing a legal challenge against the new Online Gaming Bill, 2025, which bans all online money games.
- The Karnataka High Court is seen as a favorable venue for the challenge due to its 2022 judgment that struck down a similar state-level ban.
- The industry’s legal argument is that the blanket ban is unconstitutional and violates the right to do business under Article 19(1)(g), as it fails to distinguish between games of skill and chance.
- The legal battle could have significant consequences for the industry, which has warned of job losses, company shutdowns, and a rise in illegal offshore betting.