Head Digital moves Karnataka High Court against real-money gaming ban

A23 Rummy operator files first writ against the Promotion and Regulation of Online Gaming Act 2025, which bans real money games and ads, citing disruption to business and jobs

Gaming firm Head Digital Works -- the owner of online rummy platform A23 Rummy -- on Thursday approached the Karnataka High Court challenging the recently-enacted Promotion and Regulation of Online Gaming Act, 2025, which bans all forms of real money games and their advertisement.

 

In its writ petition -- which might be the first legal challenge to the new online gaming law -- the gaming firm alleged that the act was passed without any consultation or deliberation.

 

The firm said that it has resulted in a potential disruption of more than 600 of its employees across centres such as Hyderabad and Bengaluru, among other Indian cities.

   

Head Digital Works also said that it had paid more than ₹1,643 crore in goods and services tax (GST) till July 2025. In the financial year 2024-25 (FY25), it has paid more than ₹687 crore in GST.

 

The company did not respond to Business Standard’s request for a comment. 

 

The firm operates A23 Poker, A23 Rummy, and Adda 52. The company had last week announced that it had

 

shut down these games. It added that player deposits can be withdrawn according to company policies.

 

In February, the firm had announced plans to acquire Deltatech Gaming, the company behind the online poker platform Adda52, for ₹491 crore.

 

The company has raised $81.9 million in funding, according to Tracxn data. Other companies such as WinZO, Dream11, Probo, Nazara Technologies, Zupee, Mobile Premier League (MPL) among others have suspended all forms of RMG on their platforms.

 

No other major gaming company such as Dream11, Gameskraft and Zupee has shown the intent to challenge the legislation.

 

The Promotion and Regulation of Online Gaming Act, 2025, outlines jail terms of up to three years and fines of up to ₹1 crore for anyone offering RMG in the country and prohibits banks from working with companies providing such services.