India's real-money gaming firms, including Dream11 and Gameskraft, are likely to drag the Indian government to court soon over the latter's blanket ban bill, people aware of the matter told NDTV Profit.
These companies are said to be considering legal action via a writ petition that is expected to be filed with the Karnataka High Court as early as next week, a person directly aware of the matter told NDTV Profit on the condition of anonymity.
The firms are in discussions among themselves and with their lawyers regarding whether to file individual petitions or to proceed as a federation, a second person explained, without detailing specific grounds of the legal challenge.
"We are closely monitoring the evolving regulatory landscape and its potential implications," a Gameskraft spokesperson told NDTV Profit in an emailed reply. "At this time, we have stopped operations of our rummy platforms."
NDTV Profit has also reached out to Dream11 for comments on the story.
The court action will be playing out at a time when India's online real money gaming sector is staring at a valuation wipeout, with unlisted giants like Dream11, Gameskraft, Winzo, and others facing potential erosions.
The panic in the industry is happening in the wake of the Centre's online gaming bill, which has already cleared both Houses of Parliament and now awaits presidential assent. Once enacted, the law will effectively outlaw real money gaming in India, forcing operators to either shut shop or radically pivot their business models.
No gaming platform, which deals in real money, is in a wait-and-watch mode. While platforms will try to push New Delhi for more time to pivot their business models, they will end up losing out on a very profitable revenue stream, which will be a high draw-down on the firms' valuation, an industry insider told NDTV Profit on the condition of anonymity.
India's online real money gaming sector is valued at about $25 billion, generating over Rs 31,000 crore in annual revenue and contributing close to Rs 20,000 crore in taxes, news agency PTI reported on Aug. 20, quoting official sources. The industry supports 2 lakh jobs across over 400 companies, while attracting nearly Rs 25,000 crore in foreign direct investment.
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