Gaming companies are likely to approach HC this week against RMG ban

Many real-money gaming (RMG) companies are preparing to move to the High Court this week against the Promotion and Regulation of Online Gaming Bill, 2025, passed by Parliament on Thursday, Moneycontrol reported, quoting multiple sources.

The real-money gaming (RMG) ban

The new gaming law bans any online money games where a user makes a deposit, directly or indirectly, with the expectation of earning winnings on that deposit.

Under the new law, platforms offering such games could face up to three years of imprisonment or fines of Rs 1 crore, while advertisers risk up to two years in jail or Rs 50 lakh in fines.

Additionally, repeat offences may attract three to five years’ imprisonment with higher fines.

According to MC, the companies are consulting whether to file petitions individually or through federations, in order to seek a stay on the implementation of the 'Promotion and Regulation of Online Gaming Bill, 2025'.

However, it’s unlikely that the latter, such as E-Gaming Federation (EGF) and All India Gaming Federation (AIGF), would be a party to these petitions.

Dream 11, Gameskraft, and Head Digital Works are among the major RMG companies, which are expected to contest the Act in high courts, sources said.

"It’s being discussed, which high courts to approach,"  some source told Moneycontrol.

According to The Economic Times, Executives and lawyers have opined that courts had previously ruled in favour of skill-based gaming, citing the fundamental right under the Constitution to carry out trade and occupation, among other reasons, and that the new law too could be legally challenged on those grounds once enacted.

“The Punjab and Haryana High Court was actually the first to say back in 2017 that fantasy sports should be treated as a game of skill. Since then, the Supreme Court has repeatedly turned down petitions challenging that view. But the new law has changed the game completely…acting almost like a kill switch for the industry,” a senior industry executive said, as reported by ET: “Plans are being finalised to challenge the bill in court.”

Incidentally, the gaming industry itself contributes more than Rs 25,000 crore in annual taxes.

Prominent players in this sector include Dream11, Games24x7, Nazara Technologies (Pokerbaazi), Gameskraft, and Mobile Premier League (MPL).

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