Karnataka HC to hear pleas against online money gaming law on August 30

The Karnataka High Court will hear petitions challenging the recently enacted ban on online money gaming on August 30. Major gaming company A23 has challenged the law, with senior advocates C Aryama Sundaram and Dhyan Chinnappa requesting an urgent hearing.

The Promotion and Regulation of Online Gaming Act, 2025, which received President Droupadi Murmu’s approval on August 22, outlaws all online money games, whether based on skill or chance. The bill was passed by the Lok Sabha on August 20 and by the Rajya Sabha on August 21.

Under the new online gaming law:

Cognisable and non-bailable offences: Running online money games or processing related transactions is now a serious offence, allowing police to arrest without warrant and conduct searches without prior approval.

Strict penalties: First-time offenders face up to three years in prison and fines up to Rs 1 crore. Repeat offenders may face mandatory minimum sentences and fines up to Rs 2 crore.

Ban on financial facilitation: Banks and payment providers cannot process transactions linked to prohibited games.

National regulatory authority: A statutory authority will register and classify games, issue directions, and monitor compliance.

Recognition of e-sports and social games: Competitive e-sports following official sporting rules, as well as social and educational games without monetary stakes, will be promoted under the new framework.

The central government cited public health, financial security, and national security risks to justify the sweeping ban. Officials highlighted addictive game designs, cases of financial ruin among youth and vulnerable groups, links to money laundering and terrorism financing, and challenges in regulating offshore operators.

With the law now in effect, the distinction between “games of skill” and “games of chance” has been eliminated, bringing all online money games under the prohibition.