NEW DELHI, Aug. 20 -- India's online gaming startups are preparing to take the Centre to court after the government unveiled a sweeping ban that could wipe out their businesses overnight. The looming legal clash is expected to test whether New Delhi can override states in regulating a sector long considered a state subject.

On Tuesday, the Union cabinet cleared the Promotion and Regulation of Online Gaming Bill, 2025, which seeks a complete ban on any game involving money. The bill prohibits not only play but also payments and advertising for services such as fantasy sports apps Dream11 and My11Circle, online rummy platforms RummyCulture and RummyCircle, and casual games like Pool Champs and Online Carrom.

Lawyers representing startups ...