Supreme Court Agrees to Hear Challenges to India’s Online Gaming Ban
The petitions target a law that bars real-money games, while a separate plea seeks action against betting apps that pose as social or e-sports titles.
The Supreme Court has agreed to hear a batch of petitions challenging the Promotion and Regulation of Online Gaming Act, 2025, along with a separate public-interest petition from the Centre for Accountability and Systemic Change. The CASC plea asks for action against online gambling and betting platforms that allegedly operate under the cover of social and e-sports games.
The batch is led by Dr K A Paul. In the hearing, the bench of Chief Justice Surya Kant and Justice Joymalya Bagchi asked the lawyers, including Solicitor General Tushar Mehta, to complete the pleadings in the meantime. One of the grounds raised is whether a complete ban on real-money gaming, including skill-based games like rummy or poker, violates the fundamental right to carry on trade or business.
Lawyer Virag Gupta said another bench headed by Justice J.B. Pardiwala had earlier asked the Centre to respond to his plea on 17 October 2025, but the government had still not filed a reply. He also said the bench was given a list of 2,000 gaming apps that were allegedly still carrying out betting and gambling activity in India despite the law.
CASC is asking the Union ministries for electronics and information technology, information and broadcasting, finance, and youth affairs and sports to take a harmonious view of the online gaming law and state laws. It wants the court to stop gambling products that are presented as social and e-sports titles, and says the spread of those apps is causing wide social and economic harm.
The official background note from the Press Information Bureau says the Promotion and Regulation of Online Gaming Act, 2025 was enacted in August 2025, and the rules came into force on 1 May. The framework is built around six pillars, including the Online Gaming Authority of India, registration, user safety features, a two-tier grievance system, and penalties and enforcement.
That framework imposes a complete ban on all forms of online money games, whether they are games of chance, games of skill, or a mix of the two. It also bans advertising and facilitation, bars banks and payment systems from processing related transactions, allows unlawful platforms to be blocked under the Information Technology Act, and sets penalties of up to three years in prison or a fine of up to one crore rupees, or both, for first offences.
Repeat offences carry a minimum of three years, which can go up to five, along with fines of one crore to two crore rupees. Advertising online money games can bring up to two years in prison or a fine of up to fifty lakh rupees. The law also empowers cyber cell officers at state and Union territory level to investigate offences.
The PIB backgrounder says India’s online gaming market generated INR 232 billion in 2024, and 77 per cent of that revenue came from transaction-based games. It projects the sector to grow at 11 per cent a year to INR 316 billion by 2027, while estimating that around 45 crore people have been affected by online money gaming platforms and that the losses exceed Rs. 20,000 crores.
Separately, the Supreme Court on 27 May upheld the Centre’s retrospective 28 per cent GST levy on online gaming companies and affirmed state laws that prohibit real-money gaming. In that earlier round, the court said betting and gambling are outside legitimate commerce and that money stakes change the character of the activity for legal purposes.
Enforcement has also been tightening outside the courtroom. On 25 April, MeitY’s Cyber Laws Division warned VPN providers and intermediaries not to enable access to illegal and blocked betting and prediction platforms, including Polymarket, and said users were getting around restrictions by using VPNs and converting rupees into stablecoins such as USDC.
MediaNama reported that the government had blocked more than 8,376 illegal gambling and betting sites by 28 March, but offshore platforms were still reaching users through mirror domains and private channels. A CUTS International survey in Delhi found offshore platform usage rose from 68.3 per cent before the ban to 82 per cent after it, while daily access climbed from 3.4 per cent to 42.3 per cent.