Wednesday, October 8, 2025

New law is choking us, online gaming firms tell Supreme Court

Image used for representation purpose only.

Image used for representation purpose only.
| Photo Credit: Getty Images/iStockphoto

Online gaming companies on Tuesday (October 7, 2025) said the new online gaming law has not left them even an “avenue of functioning” and employees are being laid off.

“Our business is closed completely. Employees are laid-off. It is a huge issue for us,” senior advocate C.A. Sundaram and advocate Rohini Musa urged a Supreme Court Bench of Justices J.B. Pardiwala and K.V. Viswanathan for an early hearing.

The Bench deferred the case to November 4, after the Deepavali vacations, to give time for parties to complete their pleadings.

The companies have sought an interim stay of the implementation of the Promotion and Regulation of Online Gaming Act, 2025 which banned real money games, related banking services and advertisements.

The government has argued that the law was necessary to curb the rapid mushrooming of online money games creating “serious risks for individuals, families and the nation”.

The government has maintained that online money games have exploited loopholes in the law and caused deep social harm.

It said an estimated 45 crore people were negatively affected by online money games and faced a loss of more than ₹20,000 crore playing them.

On September 8, the apex court had transferred to the apex court separate petitions challenging the law, pending scattered across various State High Courts, including Delhi, Karnataka and Madhya Pradesh.

The Centre had transferred the petitions on the ground that multiple proceedings before the various High Courts would add to the confusion, especially if the judgments contradict each other.

The writ petitions filed by online platforms and stakeholders in the High Courts had argued that the law was a violation of the right to equality and freedom of expression, federalism and the settled distinction drawn between games of skill and those of chance.

The government has argued that the legislature cannot be a mute spectator when online money gaming platforms raise serious concerns due to reports of addiction, financial losses, money laundering, and even cases of loss of lives linked to heavy monetary losses. 

The Centre has argued that investigations have revealed that “some gaming platforms were being used for terror financing and illegal messaging, which compromise the country’s security”.

Besides, it stated that gambling and betting were already restricted under Indian laws such as the Bharatiya Nyaya Sanhita, 2023, and by various State legislations. The online domain had remained largely unregulated. 

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