Head Digital Works, which operates the online rummy platform A23 Rummy, has approached the Karnataka High Court, challenging India's new online gaming law that imposes a blanket ban on real-money games, Moneycontrol has learnt.
This marks the first legal challenge to the law which was cleared by Parliament barely a week ago. The high court is expected to hear the matter on August 30.
Moneycontrol had earlier reported that Head Digital Works could approach high courts to contest the Act. Head Digital Works is yet to respond to Moneycontrol's queries on this matter.
The move comes as several companies, including Dream11 parent Dream Sports, Gameskraft, Zupee, and Pokerbaazi parent firm Moonshine Technology, have decided not to challenge the law.
The new law prohibits online money games, where a user makes a deposit, directly or indirectly, with the expectation of earning winnings on that deposit.
After the Parliament gave its nod to the bill on August 22, real-money gaming companies suspended contests and games involving money on their platforms, though they continue to offer free-to-play options. The President has given her assent to the legislation the next day.
'Declare the law unconstitutional'
In its petition, a copy of which has been seen by Moneycontrol, Head Digital Works has sought that the Karnataka High Court strike down Sections 2(1)(g), 5, 6, 7 and 9 of the Promotion and Regulation of Online Gaming Act, 2025, and declare the law unconstitutional for violating Articles 14, 19, 20, 21, 22, and 301 of the Constitution of India.
The petition argues that the law is 'vague, arbitrary and disproportionate,' and runs contrary to judgments of the Supreme Court and the Karnataka High Court, insofar as it applies to online skill-based games like rummy and poker.
In the interim, the company has requested a stay on the enforcement of these provisions to the extent they cover skill-based games such as rummy and poker as well as direct the authorities to not take any coercive action or penal action against the company, its officers, and employees.
'Will cause loss of livelihood, investments'
In its petition, Head Digital Works stated that this 'abrupt action' has resulted in the 'potential disruption of employment' of 606 employees in the company and 'crores of rupees in investment in the firm being lost overnight'
It has also caused "potential loss of livelihood for over two lakh employees across the sector, and has resulted in the total loss of over ₹23,440 crore worth investments," the petition states.
Head Digital Works, which is majority-owned by Canadian private equity firm Clairvest, operates platforms such as A23 Rummy, A23 Poker, and Cricket.com. The company claims to have 70 million registered users across platforms.
In February, the Hyderabad-based firm acquired Deltatech Gaming, the real-money gaming unit of the casino and hospitality giant Delta Corp, for around Rs 491 crore in a cash-and-stock deal. Deltatech Gaming operates Adda52, one of India's oldest online poker platforms.
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