The Supreme Court on Tuesday asked the Union government to file a detailed affidavit in response to a batch of petitions challenging the constitutional validity of the Promotion and Regulation of Online Gaming Act, 2025.
The Act, which imposes a blanket ban on "online money games" and restricts banking, advertising, and other related services, has drawn significant opposition from various online gaming companies.
During the hearing, a bench of Justices J.B. Pardiwala and K.V. Viswanathan was informed by the petitioner gaming firms that their operations had been effectively halted for over a month.
Senior advocate C.A. Sundaram, representing the petitioners, added that the gaming companies have been forced to cease real-money contests due to the law's restrictions, which also prohibit banking, advertisements, and promotions associated with online money games.
Taking note of the submissions, the Justice Pardiwala-led Bench directed the Union government to file a comprehensive reply to the petitions challenging the new law.
The matter is scheduled to be heard next on November 26.
The apex court also took note of a submission by one of the petitioners, a chess player, who highlighted how the law had disrupted his ability to participate in online tournaments, which were his primary source of income.
"India is a strange country. You are a player. You want to play. It is your only source of income and therefore, you want to join the proceedings," the bench remarked.
In addition to the batch of petitions challenging the Online Gaming Act, 2025, the Supreme Court is also hearing a separate petition seeking action against online gambling platforms that allegedly operate under the guise of social and e-sports games.
The Justice Pardiwala-led Bench directed that this petition will also be heard on November 26.
The apex court had, earlier in September, transferred to itself multiple petitions pending before the Delhi, Karnataka, and Madhya Pradesh High Courts challenging the constitutional validity of the Online Gaming Act.
The Union government had sought the transfer to avoid multiplicity of proceedings across different courts. Several online gaming companies, including Dream11, Pokerbazi, and Rummy Circle, have already discontinued their real-money contests following the enforcement of the new law.
Under the Act, offering or promoting such games attracts severe penalties — including fines of up to Rs 1 crore and imprisonment of up to three years.
During the Monsoon Session, Union Electronics and IT Minister Ashwini Vaishnaw introduced the Bill, which was passed by the Lok Sabha in seven minutes and cleared by the Rajya Sabha in just 26 minutes.
Prime Minister Narendra Modi had said the legislation would protect society from the adverse impact of online money games.
(With inputs from IANS)
