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The Supreme Court of India on Tuesday directed the Central government to file a comprehensive reply on a series of petitions challenging the Promotion and Regulation of Online Gaming Act, 2025, the country’s first central law banning real-money online gaming. The Act, which prohibits “online money games” and restricts associated financial transactions and advertisements, has been at the centre of intense legal and industry debate since its passage in August.
The direction came from a bench of Justices J.B. Pardiwala and K.V. Viswanathan, which was informed that the Centre had already filed a response to the interim prayers made in the pleas. However, the bench sought a detailed and consolidated reply addressing the primary constitutional and regulatory issues raised in the main petitions.
“We want the Additional Solicitor General appearing for the Union to file a comprehensive reply to the main petition itself,” the bench said, instructing that a copy of the response be provided in advance to the petitioners’ counsel. It also granted the petitioners liberty to file a rejoinder if necessary. The matter will next be heard on November 26, 2025.
The Case and the Law Under Scrutiny
The Promotion and Regulation of Online Gaming Act, 2025 marks the first attempt by the Union government to create a nationwide framework governing online games involving monetary stakes. Passed by Parliament in August and receiving presidential assent on August 22, the law bans all forms of online money gaming — including fantasy sports, e-sports, and card games — when played for real money or stakes.
Under the Act, offering or participating in such games is treated as a cognisable and non-bailable offence. It also prohibits advertisements, financial transactions, and banking services connected to these games, effectively suspending the operations of several major platforms.
The legislation was introduced amid growing public concerns over gambling addiction, fraud, and the lack of uniform regulation across states. However, its blanket ban, which applies even to skill-based games, has triggered strong opposition from gaming companies, professional players, and industry associations who argue that the Act violates constitutional rights and disrupts livelihoods.
Petitioners’ Arguments
The petitions, now clubbed together before the Supreme Court, were initially filed before the Delhi, Karnataka, and Madhya Pradesh High Courts. The Centre later requested their transfer to the apex court to avoid conflicting verdicts across jurisdictions. On September 8, the Supreme Court granted the transfer plea, consolidating the cases for unified adjudication.
Senior advocate C.A. Sundaram, representing one of the petitioners, told the bench that the industry had been effectively shut down for over a month, with several companies halting operations following the enforcement of the Act.
The petitioners have argued that the new law violates Article 19(1)(g) of the Constitution, which guarantees citizens the right to practice any profession or carry on any lawful trade or business. They contend that many of the affected games — including online chess, rummy, and fantasy sports — have been judicially recognised as games of skill rather than gambling.
“The Act imposes a sweeping prohibition on all money-based online games, even those that courts have previously held to be skill-oriented. This is an unreasonable restriction on legitimate business activity,” the petitions state.
The petitioners further argue that by criminalising online gaming in such a broad manner, the Act infringes upon individual liberty and economic freedom, impacting not just players but also thousands of developers, organisers, and investors working in India’s growing online gaming sector.
Concerns from the Gaming Community
During the hearing, one of the lawyers representing an individual petitioner told the bench that his client was a professional chess player who participated in online tournaments and was preparing to launch an application for skill-based gaming before the law took effect.
“I (the petitioner) am a chess player, and it’s a source of livelihood. I was also about to launch an app,” the counsel said, seeking the court’s permission to join the ongoing proceedings.
Justice Pardiwala, noting the peculiarities of the case, remarked, “India is a strange country. You are a player. You want to play. It’s your only source of income and therefore, you want to join the proceedings.” The bench subsequently ordered that his plea be tagged with the existing petitions.
Industry representatives have repeatedly highlighted that the online gaming ecosystem in India employs over 100,000 people directly and indirectly. The sector, which has drawn significant foreign investment in recent years, is now facing uncertainty over its future.
Centre’s Position and Legal Developments
The Ministry of Electronics and Information Technology (MeitY), which introduced the legislation, has maintained that the Act is necessary to curb addiction, protect consumers, and prevent financial exploitation through online gambling disguised as skill games.
In its transfer petition before the Supreme Court, the government argued that the cases pending before different high courts involved “substantially similar questions of law” and that consolidating them was vital to ensure uniformity. “Due to multiple litigations pending before various high courts involving same or substantially similar question of law and challenging the vires of the same impugned Act, it is imperative that the same is transferred to this court to avoid divergence of opinions or multiplicity of proceedings,” the Centre said in its plea.
The government also pointed out that following the law’s enactment, several petitions were filed challenging its validity, forcing it to defend the legislation simultaneously across multiple forums. The Supreme Court’s consolidation of cases aims to streamline this process and deliver a definitive interpretation on the constitutionality of the Act.
Linked Pleas on Online Gambling and Betting
In addition to the main petitions challenging the Act, the bench on Tuesday noted that a separate petition seeking directions to prohibit online gambling and betting platforms that operate under the guise of e-sports and social gaming would also be heard on November 26.
This petition, filed by the Centre for Accountability and Systemic Change (CASC) and Shourya Tiwari, urges the government to take a stronger stance against unregulated betting networks masquerading as entertainment platforms. The Supreme Court had sought the Centre’s response to this plea a day earlier.
The court’s decision to hear both sets of cases together indicates that the upcoming hearing could be a defining moment for India’s online gaming and betting landscape, potentially reshaping how digital entertainment and skill-based gaming are classified and regulated under law.
Broader Implications
The Promotion and Regulation of Online Gaming Act, 2025, has divided opinion across industries and states. While social activists and child welfare groups have welcomed the legislation as a step toward protecting vulnerable users, gaming firms and legal experts view it as overbroad and unconstitutional.
Many argue that a more balanced regulatory framework — distinguishing clearly between games of skill and games of chance — would have achieved the government’s goals without stifling innovation and employment.
With the Supreme Court now set to take up the matter on November 26, all eyes are on how the Centre justifies its sweeping restrictions and whether the judiciary will uphold or strike down key provisions of the law.
For India’s rapidly expanding digital gaming ecosystem, the court’s ruling could determine whether the sector emerges from uncertainty with a new legal framework or faces prolonged paralysis under a nationwide prohibition.
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