Pixel P&L: Online Gaming Act Cannot Be Stayed by Courts, Indian Government Tells Karnataka HC

Welcome to another Pixel P&L edition. This issue takes 5 minutes to read. If you only have one, here are the 5 most important things:

• India’s central government told the Karnataka High Court on Saturday that the latter lacks the authority to prevent enforcement of the Online Gaming Act following presidential approval.

• Goa will host the Chess World Cup 2025 with 206 players competing for $2 million.

• Blizzard's Diablo team unionizes with 450+ developers joining CWA in one of Microsoft's largest gaming unions.

• CD Projekt revenue rises 4.3% despite profit drops as heavy development spending signals major projects ahead.

• Saudi gaming market hits $1.19 billion and targets $1.64 billion by 2028 under Vision 2030 strategy. 

Let's get into it.

Court Cannot Block Online Gaming Act After Presidential Assent, Centre Argues

The central government told Karnataka High Court on Saturday that courts lack authority to prevent enforcement of the Promotion and Regulation of Online Gaming Act, 2025, following presidential approval.

The case centers on a challenge by Head Digital Works, parent company of gaming platform A23, which operates rummy and poker games. The company contests the law as an "arbitrary blanket ban" on real-money online games.

Solicitor General Tushar Mehta, representing the Centre, argued the legislation completed constitutional requirements through parliamentary passage and presidential assent, making its notification a "constitutional function" beyond judicial restraint.

Defense lawyers Aryama Sundaram and Dhyan Chinappa sought an interim stay and requested the court to prevent government notification until judicial review.

The act, which bans all online real-money games regardless of skill or chance elements, was introduced August 20, passed the next day, and received presidential assent August 23. The court declined to grant a stay and adjourned hearings until September 8.

Goa to Host Chess World Cup as India Cements Global Standing

India will host the FIDE World Cup 2025 in Goa from October 30 to November 27. The knockout tournament featuring 206 players offers a $2 million prize pool and three qualifying spots for the 2026 Candidates Tournament. Twenty Indians have already secured places, including world champion Gukesh D and rising stars Rameshbabu Praggnanandhaa and Arjun Erigaisi.

"India has become one of the strongest chess nations," said FIDE President Arkady Dvorkovich, highlighting the country's recent dominance. Indian teams swept both divisions at the Chess Olympiad, while Divya Deshmukh captured the Women's World Cup in July.

Prime Minister Narendra Modi called hosting duties a source of national pride, noting chess's growing popularity among youth. The tournament represents the first World Cup India is hosting in over two decades.

⚡️Quick Bytes

Blizzard's Diablo Team Votes to Unionize

Over 450 Blizzard Entertainment developers working on the Diablo franchise voted to join the Communications Workers of America, forming one of the largest unions at a Microsoft-owned gaming studio. The unit encompasses developers, artists, designers, engineers and support staff. Microsoft recognized the union following authorization cards and online voting. The move adds to Microsoft's growing unionized workforce, which now totals approximately 3,500 across gaming properties following the company's $58.7 billion Activision Blizzard acquisition.

CD Projekt Revenue Rises 4.3% as Game Development Costs Weigh on Profits

CD Projekt reported mixed first-half 2025 results, with revenue rising 4.3% to PLN 443 million ($121 million) while net profit fell 7.7% to PLN 155 million ($42.4 million) from PLN 170 million ($46.5 million) a year earlier. Strong sales of Cyberpunk 2077 and its Phantom Liberty expansion drove growth, aided by a Nintendo Switch 2 launch. The Witcher 3 surpassed 60 million units sold. Development spending exceeded PLN 240 million ($65 million) as the company ramped up investment in future projects, including The Witcher 4.

Saudi Gaming Market Hits $1.19 Billion, Eyes $1.64 Billion by 2028

Saudi Arabia's gaming market generated $1.19 billion in 2024 and is projected to reach $1.64 billion by 2028, growing at an 8.2% compound annual rate, according to Savvy Games Group's annual report. The growth spans console, mobile and PC gaming as part of the kingdom's Vision 2030 strategy targeting $13.3 billion in GDP contribution. Savvy subsidiary Scopely became the world's eighth-largest game publisher, with hit title Monopoly Go generating $3 billion in revenue.

⚔️Side Quest

📺 Watch: I enjoyed YongYea's perspective on how Hollow Knight: Silksong’s studio Team Cherry challenges gaming industry norms. Instead of crunch culture, they embraced creative freedom after Hollow Knight's success, letting a DLC organically expand into a massive game with 40+ bosses. He draws on investigative reporting and developer quotes to show how prioritizing creativity over corporate deadlines might actually produce better games.

🎮 Play: Mortal Sin, a satisfying melee combat roguelike that nails the feel of impactful hits. Doom-inspired room clearing meets visceral dismemberment with just enough randomization to keep runs fresh without overwhelming skill requirements. 

📚 Read: Brian Merchant reveals how AI is devastating translation careers, not through revolutionary technology, but by giving management permission to slash wages and accept "good enough" work. Featuring firsthand accounts from translators facing income drops of 50-80%, it shows how the AI hype cycle enables job degradation even when the technology hasn't dramatically improved.

💡Did You Know

Did you know Mattel once created a gaming console so terrible it dropped from $70 to $10 in just one year? The 2006 HyperScan only had five games made for it, and forced players to buy collectible cards to unlock basic game content. Completing a single Ben 10 or X-Men game required 8-13 booster packs at $10 each, making the true cost hundreds of dollars per game. Combined with broken controls and graphics that looked outdated even in 2006, it became a disaster.

📜 Quote of the Day

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