India’s online gaming industry is in crisis. On Friday, September 26, 2025, several online gaming companies informed the Supreme Court that their operations have come to a complete halt due to a new law. This legislation specifically bans real-money games, restricts related banking services, and prohibits advertisements.
These companies are desperately seeking an expedited hearing and temporary relief from the enforcement of the Promotion and Regulation of Online Gaming Act, 2025. Chief Justice of India B.R. Gavai has acknowledged the urgency and has committed to listing the case for an early hearing once the court reopens after the Dussehra break on October 6.
The government maintains that the new law was essential to control the rapid spread of online money games. It argues that these games pose significant risks to individuals, families, and the nation as a whole. While acknowledging the advantages of digital technology, the government asserts that online money games have exploited legal loopholes, leading to profound societal harm.
Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, stated in the Rajya Sabha that approximately 45 crore people have been adversely affected by online money games, collectively losing over ₹20,000 crore. Many individuals reportedly lose their life savings pursuing the false hope of quick returns, pushing families into severe debt and distress.
Earlier, on September 8, 2025, a Supreme Court Bench led by Justice J.B. Pardiwala consolidated various petitions challenging this law. These petitions, originally scattered across several State High Courts (including Delhi, Karnataka, and Madhya Pradesh), were transferred to the Supreme Court at the Centre’s request.
The Centre argued that consolidating the cases in the Supreme Court would prevent conflicting judgments from different High Courts and allow for a definitive ruling on the law’s constitutionality, given the significant constitutional questions involved. The online gaming companies’ counsel emphasized the severe impact, stating, “Businesses are shut down because of the Act.”
The online platforms and other stakeholders, through their petitions, contend that the Act violates fundamental rights, including the right to equality and freedom of expression, challenges federalism, and disregards the established legal distinction between games of skill and games of chance.
In response, the government argues that it cannot remain passive while online money gaming platforms generate serious concerns due to widespread addiction, financial ruin, money laundering allegations, and even tragic losses of life linked to substantial monetary losses. The lure of quick profits often leads players to squander their entire savings.
Furthermore, the Centre highlighted that investigations have revealed instances where “some gaming platforms were being utilized for terror financing and illegal messaging, thereby compromising the country’s security.”
The government also pointed out that traditional gambling and betting are already regulated under existing Indian laws, such as the Bharatiya Nyaya Sanhita, 2023, and various State legislations. The online gaming sector, however, largely remained unregulated. This new Bill aims to ensure uniform standards apply to both physical and digital gaming environments.