The Centre has informed the Delhi High Court that the Promotion and Regulation of Online Gaming Act, 2025, though already assented to by President Droupadi Murmu, is not yet in force but will be notified soon. Once that step is completed, a new regulatory authority will be established to define and oversee prohibited online money games.

Appearing before Chief Justice DK Upadhyaya and Justice Tushar Rao Gedela, Solicitor General Tushar Mehta said the government is encouraging online gaming but considers real-money formats dangerous. “We are in the process of framing Rules and contemplating constituting the authority also. The government is promoting online gaming. We are not against it. But online money gaming results in addiction in children, suicides etc,” he told the court.

High Court Proceedings and Government Clarifications

The bench was addressing a petition filed by Bagheera Carrom (OPC), which is contesting the law’s validity. The company argued the Act had been brought in hastily, without consultation, and in breach of constitutional rights.

The judges, however, stressed that the statute cannot take effect until the government issues a notification. “Unless a notification is issued, this Act cannot come into being... your apprehension that you will be prosecuted is not live as of today,” the Chief Justice remarked to counsel for the petitioner. The bench said rules will eventually provide clarity and adjourned the matter for eight weeks.

The court also noted that regulatory questions around areas such as e-sports can only be addressed by the yet-to-be-created authority once the Act is enforced and rules are in place.

Petitioner’s Arguments Against the Act

Bagheera Carrom has developed a digital version of carrom, where entry fees are pooled and awarded to winners. It claims the new law unfairly places its operations in jeopardy. In its filings, the company described the statute as “ultra vires, unconstitutional, arbitrary, vague, disproportionate, violative of Articles 14, 19, and 21 of the Constitution.” It further contends that Parliament lacked competence to pass the measure.

The petition argued that by failing to separate games of chance from games of skill, the law indiscriminately blocks all money-based formats. Carrom, it noted, has been officially recognized as a skill-based activity by domestic and international federations. According to the company, safeguards such as responsible gaming policies, certifications, and non-betting mechanisms have already been implemented, yet the Act still threatens legitimate enterprises.

“The Act imposes a blanket prohibition which is wholly disproportionate to its stated objectives,” the petition said, adding that narrow compliance tools like age checks or monetary limits would have been less restrictive. It also criticized vague definitions of terms like “online money game,” “e-sports,” and “online social game,” arguing that the uncertainty creates “a chilling effect” and risks penalizing lawful businesses without fair notice.

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Broader Legal Challenges and Supreme Court Petition

The Delhi case is one of several challenges pending across the country. The Karnataka High Court is hearing a plea from Head Digital Works, operator of the rummy and poker platform A23, while the Madhya Pradesh High Court has admitted a petition by Clubboom11 Sports & Entertainment, the fantasy sports operator of Boom11.

To avoid fragmented rulings, the Union government has petitioned the Supreme Court to transfer all ongoing cases to one forum. Chief Justice of India Bhushan R. Gavai confirmed that the plea will be considered on September 8. The Centre argued that having different high courts rule separately could lead to conflicting outcomes and deepen uncertainty for the gaming sector.

The government’s transfer plea, filed through the Ministry of Electronics and Information Technology, noted that all the petitions raise the same issues: whether the Act violates Articles 14, 19, and 21 of the Constitution, whether Parliament had legislative competence, and whether the blanket prohibition unlawfully erases the established distinction between skill and chance.

The 2025 law bans all forms of online money games and related advertising, with penalties of up to three years in prison and fines as high as ₹1 crore for operators. Advertising such platforms can result in two years’ imprisonment and fines of up to ₹50 lakh. At the same time, it is designed to encourage e-sports and non-money online games.

With multiple companies contesting its constitutionality and the Centre pressing for consolidation, the ultimate interpretation of the law now rests with the Supreme Court.

Source:

India’s Government to Establish Authority for Online Gaming Regulation, Delhi High Court Directs Action, news.worldcasinodirectory.com, September 3, 2025