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Karnataka HC issues notice to Centre on A23’s plea against gaming law

EntrackrEntrackr · 18d ago
Karnataka HC issues notice to Centre on A23’s plea against gaming law
Medial

The Karnataka High Court has stepped into the debate on India’s new Promotion and Regulation of Online Gaming Act, 2025, which bans all forms of online money games, including skill-based games like rummy and poker. The court, led by Justice B M Shyam Prasad, has issued notice to the Union government. It has asked the Centre to file its reply to a petition filed by Head Digital Works, the parent company of A23, which became the first gaming operator to challenge the new law. The petitioners, represented by senior advocates C. Aryama Sundaram and Dhyan Chinappa, argued that the new Act is misleading. Its title suggests “promotion and regulation,” but in effect, it imposes a blanket ban on all money games. They warned the court that the sudden implementation of the law could trigger a “huge backlash” across the country. According to them, the ban could destroy thousands of jobs, disrupt ongoing businesses, and impact a sector that has attracted heavy investment. They requested that the government either delay the notification of the law or at least provide seven days’ advance notice so that affected parties can seek legal remedies. On behalf of the Centre, Solicitor General Tushar Mehta opposed the plea. He argued that once the President has given assent to a bill, notifying it is a constitutional function. The courts, he said, cannot stop this process. However, Mehta also acknowledged that the notification could be issued soon and assured the court that he would seek instructions from the government. The next hearing is scheduled for September 8 at 2:30 PM. The petition by A23’s parent company marked the first major legal challenge to the new law. However, leading players like Dream11, Gameskraft, and MPL have chosen not to contest the legislation in court.

A23 parent lays off 500 employees following RMG ban: Report

EntrackrEntrackr · 13d ago
A23 parent lays off 500 employees following RMG ban: Report
Medial

Head Digital Works, the parent company of A23 Rummy, A23 Poker, and Cricket.com, has laid off approximately 500 employees, nearly two-thirds of its workforce. The move comes after India enacted the Promotion and Regulation of Online Gaming Act, 2025, which imposes a blanket ban on real-money online gaming. Last week, A23 also filed a petition before the Karnataka High Court challenging the newly enacted law. The next hearing is scheduled for September 8 at 2:30 PM. “At Head Digital Works, our people have been central to our growth and it was with careful consideration that we took the decision to let go of a significant part of our workforce. We will ensure that this transition is handled with responsibility, providing meaningful severance and support to those impacted, and we remain grateful for their contributions. While recent regulatory changes necessitated this step, we are confident that a balanced framework will evolve over time, and we remain committed to building a resilient future and exploring new opportunities for the company," said Siddharth Sharma, CEO, Head Digital Works. The decision was announced in a company-wide town hall, and the firm now has about 200 employees focused on key teams. Meanwhile, Head Digital Works is evaluating new business opportunities beyond gaming to build a sustainable future. Head Digital Works further highlighted the broader impact on the sector, warning of job losses affecting over 200,000 people and threats to foreign and domestic investments in India’s booming Rs 23,440 crore online skill gaming industry. Following the ban, more layoffs are expected across real-money gaming platforms. Recently, Bengaluru-based unicorn MPL was in the news for cutting about 60% of its staff in India, roughly 300 employees.

Centre moves SC to consolidate legal challenges against Online Gaming ban

EntrackrEntrackr · 13d ago
Centre moves SC to consolidate legal challenges against Online Gaming ban
Medial

The Union government has approached the Supreme Court, requesting the transfer of multiple petitions challenging the Promotion and Regulation of Online Gaming Act, 2025 from various High Courts to the apex court. As per the Bar and Bench report, the move aims to avoid inconsistent judgments across jurisdictions. These petitions are currently pending before the Karnataka, Madhya Pradesh, and Delhi High Courts. The government urged the Supreme Court to list the transfer plea early, citing an imminent interim hearing in Karnataka. The Chief Justice’s bench has agreed to list the matter for consideration next week. The disputed law, passed by Parliament on 21 August and receiving presidential assent on 22 August, enforces a nationwide ban on real-money online games, including fantasy sports and other skill-based formats. Petitioners argue that the Act indiscriminately prohibits even games of skill, violating the constitutional right to practice any profession or trade. Gaming companies like Clubboom11 and others have obtained notices in the Madhya Pradesh High Court, which set the next hearing for 28 October after directing the Centre to respond within a month. In parallel, petitions are underway in Karnataka and Delhi. The Centre hopes to consolidate all challenges in the Supreme Court to ensure a unified and consistent judicial determination. Last week, A23’s parent company became the first major gaming company to challenge the new law. However, leading players like Dream11, Gameskraft, and MPL have chosen not to contest the legislation in court.

Nazara terminates deal with I3 Interactive to buy stake in Moonshine

EntrackrEntrackr · 17d ago
Nazara terminates deal with I3 Interactive to buy stake in Moonshine
Medial

Nazara terminates deal with I3 Interactive to buy stake in Moonshine Nazara Technologies Limited has called off its plan to acquire a minority stake in Moonshine Technology Private Limited, the parent company of online poker platform PokerBaazi, following the enactment of the Promotion and Regulation of Online Gaming Act, 2025. In a stock exchange filing, Nazara said that it issued a termination notice to I3 Interactive on August 31, 2025. The company had earlier agreed to purchase 38,073 equity shares, representing 0.96% of Moonshine’s equity from I3 Interactive Inc. for about Rs 15.9 crore. However, with the new law prohibiting real-money online gaming, including poker, Nazara said the deal has triggered a “material adverse effect” under the terms of the Share Purchase Agreement (SPA). Following the introduction of the gaming bill, Nazara promptly suspended its real money gaming operations. Nazara had announced the acquisition of a 46.07% stake in Moonshine in September last year. Besides I3 Interactive Inc, Nazara had bought the shares from a number of sellers, which included PSM Group Limited, Bellerive Capital (BCP) 6 Limited, Shells and Shores Consultancy & Holdings LLP, and others. Although the listed gaming company has consistently clarified that it neither consolidates Moonshine’s financials nor has any revenue exposure to real-money gaming, the ban would effectively render its investment in PokerBaazi worthless. While leading gaming firms such as Dream11, Gameskraft, and MPL have opted not to contest the new law, the parent company of A23, Head Digital Works, has filed a constitutional petition in the Karnataka High Court to challenge it, prompting the court to issue notice to the central government.

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