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Supreme Court to Hear Challenges To New Online Gaming Law

NEW DELHI — In a major development for India’s online gaming industry, the Supreme Court has transferred to itself all petitions challenging the constitutional validity of the newly enacted Promotion and Regulation of Online Gaming Act, 2025. The decision, made by a bench of Justices J.B. Pardiwala and K.V. Viswanathan, aims to centralize the legal challenges and prevent the possibility of contradictory rulings from different High Courts.

The move comes after the Union government, represented by Solicitor General Tushar Mehta, filed a transfer petition arguing that at least three High Courts—in Karnataka, Delhi, and Madhya Pradesh—were already hearing challenges to the new law. The Centre emphasized the importance of consolidating these cases before a single constitutional forum, stating, “The transfer petition is allowed and the proceedings are transferred to this court… We make it clear that no other high court will entertain a challenge to the said law and proceedings will stand transferred to this court.”

The petitions, filed by online gaming companies such as Head Digital Works Pvt Ltd, Bagheera Carrom (OPC) Pvt Ltd, and Clubboom11 Sports & Entertainment Pvt Ltd, argue that the 2025 Act violates several fundamental rights guaranteed by the Constitution. They claim the law infringes upon the right to equality (Article 14), the freedom to practice any profession or business (Article 19(1)(g)), and the right to life and personal liberty (Article 21).

A key contention raised by the petitioners is that the Act fails to distinguish between games of skill and games of chance, a distinction that has been upheld by courts in the past. They argue that the blanket ban on “online money games” is unconstitutional and disproportionate, as it criminalizes even skill-based games like rummy, poker, and carrom, which are legally protected.

The government, through the Ministry of Electronics and Information Technology (MeitY), countered these claims by highlighting that the new legislation is designed to address the “public health menace” of online money gaming, which has been linked to addiction, financial ruin, and in some cases, suicides. The Centre stated that the law aims to protect individuals, especially the youth, while promoting e-sports and other forms of non-monetary gaming. It argued that the Act is necessary to create a “secure, structured and innovation-friendly digital environment.”

Solicitor General Mehta has previously informed the Delhi High Court that the government plans to soon notify the Act and constitute a regulatory authority to define and classify games. The authority would also be responsible for framing rules to implement the law.

The Supreme Court’s decision to take over all pending cases ensures a uniform and conclusive adjudication on a law that applies across India. This move will provide clarity to the online gaming industry, which has been grappling with regulatory uncertainty and the risk of conflicting judicial pronouncements. The litigation will now be centralized, and the Supreme Court will have the final say on the constitutional validity of the Act.

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