Online gaming companies have recently informed the Supreme Court of India that their businesses are effectively shut down due to a new law banning real money games, associated banking services, and advertising. They are pushing for an urgent hearing and temporary relief from the ‘Promotion and Regulation of Online Gaming Act, 2025’.
Chief Justice of India B.R. Gavai has agreed to hear the case soon after the court re-opens on October 6, 2025, following the Dussehra break.
The government maintains that this law was essential to control the rapid growth of online money games, which it argues pose serious risks to individuals, families, and the nation. While acknowledging the benefits of digital technology, the government asserts that these games have exploited legal loopholes, leading to significant societal harm.
Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, highlighted concerns in the Rajya Sabha, estimating that 450 million people have been negatively impacted by online money games, collectively losing over ₹20,000 crore.
Previously, on September 8, 2025, a Supreme Court Bench led by Justice J.B. Pardiwala consolidated all petitions challenging the gaming law, transferring them from various State High Courts to the apex court at the Centre’s request. The gaming companies’ counsel emphasized their need for an urgent listing, reiterating that the Act has led to business closures.
The Centre sought this consolidation to avoid potential confusion from conflicting judgments across multiple High Courts, aiming for a definitive Supreme Court ruling on the law’s constitutionality. Online platforms and stakeholders, in their High Court petitions, argued that the law infringes upon rights to equality, freedom of expression, principles of federalism, and the established distinction between games of skill and games of chance.
However, the government contends that it cannot remain passive in the face of alarming reports of addiction, financial losses, money laundering, and even tragic loss of life linked to substantial monetary losses incurred through online gaming. Many players reportedly lose their entire savings chasing the false promise of quick profits, pushing families into severe debt and distress.
Furthermore, investigations have uncovered that certain gaming platforms were allegedly being utilized for terror financing and illicit messaging, directly compromising national security. The Centre noted that while traditional gambling and betting are already regulated under existing Indian laws like the Bharatiya Nyaya Sanhita, 2023, and various state legislations, the online gaming sector had largely remained unregulated. This new Bill aims to establish consistent standards across both physical and digital gaming environments.