The Karnataka High Court has stayed the Enforcement Directorate’s (ED) investigation against online gaming company Gameskraft, offering significant interim relief to the Bengaluru-based startup and potentially setting a broader precedent for India’s fast-evolving real-money gaming sector.
The stay comes amid a prolonged legal battle over whether certain online games offered by the company constitute games of skill or games of chance, a distinction that has major regulatory and taxation implications. The ED’s probe stemmed from allegations linked to financial irregularities and money laundering under the Prevention of Money Laundering Act (PMLA), following tax demands raised by authorities.
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