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Informist, Monday, Sept. 8, 2025

 

--SC transfers to itself pleas against govt ban on online money gaming 

--CONTEXT: Pleas filed against online money gaming ban in three HCs 

 

NEW DELHI – The Supreme Court on Monday transferred to itself petitions against the Centre's "complete ban" on online money gaming in India. Multiple petitions have been filed in the Karnataka High Court, Madhya Pradesh High Court, and Delhi High Court against The Promotion and Regulation of Online Gaming Act, 2025.

 

"The respective high courts are requested to transfer the entire record within a period of one week from today. Let this transfer be done digitally to save time. The transfer petition is accordingly disposed of," said the apex court. The Supreme Court made it clear that if there is any challenge to the validity of the 2025 Act before any other high court, the same shall not be entertained and the entire matter shall stand transferred to the top court. 

 

On Aug. 30, the Karnataka High Court had issued a notice to the Centre on a petition by Head Digital Works Pvt. Ltd, which operates India's marquee gaming brand 'A23', against the government's ban on online money gaming in India. The high court asked the Centre to file its response till the next date of hearing on Monday, at least on the interim prayer made by the petitioner seeking the government to not notify the Promotion and Regulation of Online Gaming Act, 2025.

 

Thereafter, the government last week told the Delhi High Court that it will soon constitute a regulatory authority and frame rules and regulations under The Promotion and Regulation of Online Gaming Act, 2025. The high court was hearing a petition by Bagheera Carrom (OPC) Pvt. Ltd. challenging the Act, which, according to it, was promulgated in haste, without consultation with stakeholders and in violation of the fundamental rights, due process of law, federal principles, and the doctrine of separation of powers.

 

On Wednesday, the Madhya Pradesh High Court sought the government's reply on a petition by Clubroom 11 Sports and Entertainment challenging the 2025 Act. Therein, the petitioner argued that fantasy sports was a distinct category of online gaming that has already been upheld in several judicial pronouncements and, therefore, the government ought to regulate the sector rather than prohibit it outright.

 

The 2025 Act, imposing a complete ban on online money games, applies to games of chance, games of skill, and those that combine both. The Act prohibits advertising and promotion of such games and financial transactions related to these platforms cannot be processed by banks or payment systems. Further, the authorities will also be empowered to block access to unlawful platforms under the Information Technology Act, 2000.

 

Under the Act, strict punishments have been introduced, such as offering or facilitating online money games could lead to imprisonment of up to three years and a fine of up to INR 10 million. Further, financial transactions linked to these games are also punishable with similar penalties. Advertising such games can attract a jail term of up to two years and a fine of up to INR 5 million under the Act. Repeat offenders face harsher punishments, including imprisonment of up to five years and fines of up to INR 20 million. Offences under key provisions will be cognisable and non-bailable, which means police can arrest without a warrant and bail is not a right.

 

The petitioners have argued that the ban was against Article 19(1)(g) of the Indian Constitution, which grants all citizens the fundamental right to practice any profession, occupation, trade, or business. Further, the petitioners have argued that the ban on online money games was against the Right to Equality under Article 14 as it was being given discriminatory treatment, where similar physical format games were untouched. The petitioner said that the ban would cause a potential loss of over 200,000 jobs, INR 310 billion in annual revenues and over INR 200 billion in tax contributions.  End

 

Reported by Surya Tripathi

Edited by Ashish Shirke

 

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