Supreme Court Takes Over All High Court Challenges to New Online Gaming Law
The Supreme Court has transferred all petitions challenging the constitutional validity of the Promotion and Regulation of Online Gaming Act, 2025, from various high courts to itself. The move, sought by the central government, aims for an expeditious and unified adjudication on the matter. The new law, which imposes a nationwide ban on real-money online gaming, has been challenged in several states for allegedly prohibiting games of skill in violation of the fundamental right to practice a profession, trade, or business.
Unpacked:
The government aimed to avoid inconsistent rulings from different high courts on the Online Gaming Act and ensure a uniform, expeditious decision regarding its constitutionality across India, given the national scope of the law and its impact on operators and users countrywide.
Challengers argue that the ban violates Article 19(1)(g) of the Constitution, which protects the right to practice any profession, trade, or business. They claim that even skill-based games involving money are legitimate businesses, and a total ban is disproportionate and infringes on their fundamental rights.
The Act creates three categories: e-sports (competitive, non-betting events), online social games (for entertainment or education, no monetary stakes), and online money games (any game, skill or chance, involving monetary stakes). Only online money games are fully banned; e-sports and social games are promoted and regulated.
Individuals or entities offering or advertising online money games face imprisonment up to three years and/or fines up to ₹1 crore. Repeat offenders face harsher minimum sentences and larger fines. Supporting, facilitating, or processing transactions for banned games is also punishable under the Act.