In a significant development that could reshape the future of India’s real-money gaming landscape, the Supreme Court of India has directed the Union Government to file its response in the ongoing case challenging the Promotion and Regulation of Online Gaming Act, 2025 (PROGA). The next hearing has been scheduled for November 26, marking a crucial moment for both policymakers and the embattled gaming industry.
A Legal Showdown Over India’s Digital Gaming Future
The bench, comprising Justices J.B. Pardiwala and K.V. Vishwanathan, heard multiple petitions questioning the constitutional validity of PROGA. The Act, which has yet to be formally notified, has already triggered widespread disruption in India’s online gaming sector—forcing several platforms to suspend operations and leaving thousands without income.
Senior Advocate C. Aryama Sundaram, representing Head Digital Works, the parent company of A23, highlighted the industry’s growing distress. “Our businesses have been shut for over a month now, even though the law hasn’t been notified. We urge the Court to hear the matter and provide interim relief,” Sundaram pleaded before the bench.
The Supreme Court instructed Additional Solicitor General N. Venkataraman to submit the Centre’s formal reply and ensure copies are served to all petitioners ahead of the next session. Petitioners have been granted permission to file rejoinders following the government’s submission.
States May Be Added to the Case
In an interesting turn, Advocate Pranav Bansal, appearing for chess player Manav Arya, sought to implead individual states in the proceedings. He argued that several states have enacted parallel gaming laws that directly contradict PROGA’s central framework.
“The petitioner is a professional chess player whose livelihood depends on skill-based tournaments. The overlapping legal frameworks have disrupted his ability to compete and earn,” Bansal noted. His petition has now been tagged along with other cases challenging the contentious legislation.
What PROGA 2025 Means—and Why It’s So Controversial
Passed earlier this year, the Promotion and Regulation of Online Gaming Act, 2025, seeks to introduce a unified regulatory framework for online games in India. However, the law has faced fierce criticism from operators, esports organizations, and player associations.
At its core, PROGA imposes a blanket prohibition on all games played for stakes, whether they are skill-based (like poker, rummy, or fantasy sports) or purely chance-based (like lottery or roulette). This sweeping approach has effectively halted operations for numerous legitimate gaming companies, from fantasy sports startups to established poker networks.
Industry experts argue that this “one-size-fits-all” ban violates constitutional protections under Articles 19(1)(g) (freedom to practice any profession) and Article 301 (freedom of trade and commerce).
Consolidating All Gaming Petitions
Earlier, the Supreme Court had issued an order consolidating all ongoing petitions related to online gaming regulation. The matters previously pending before the Delhi, Karnataka, and Madhya Pradesh High Courts were transferred to the apex court to ensure consistent adjudication.
Furthermore, the top court directed that any new challenges against PROGA filed in other jurisdictions should be transferred directly to the Supreme Court to avoid conflicting interpretations.
Industry in Crisis: Businesses Shut, Jobs Lost
Since PROGA’s passage, India’s real-money gaming industry has been in turmoil. Several major players, including A23, Clubboom 11 Sports and Entertainment Pvt. Ltd., and Bagheera Carrom (OPC) Pvt. Ltd., have been forced to suspend key operations. The ripple effect has been felt across the ecosystem—impacting developers, marketers, esports professionals, and even financial service partners.
With an estimated 50,000+ jobs linked to real-money gaming and over ₹20,000 crore in annual revenue at stake, the industry’s representatives have been urging the government to reconsider the Act’s sweeping restrictions.
Fear of Offshore Migration
Both the E-Gaming Federation (EGF) and the Federation of Indian Fantasy Sports (FIFS) have publicly warned that the Act could backfire by pushing players toward illegal offshore platforms, which operate without regulation or consumer protection.
According to EGF, “Instead of safeguarding Indian players, a blanket ban will drive users underground, making it harder to monitor activity and prevent fraud.”
This concern mirrors trends seen in other countries: when governments enforce overly restrictive gaming bans, black-market operators tend to fill the void—often leading to money laundering, tax evasion, and user exploitation.
Legal Experts Anticipate a Landmark Decision
Legal analysts believe the November 26 hearing will be pivotal. If the Supreme Court agrees to grant interim relief, suspended platforms may be able to resume partial operations while the case continues.
“It’s a defining moment,” said one gaming industry lawyer. “The Court’s interpretation of PROGA will set the tone for India’s online gaming future—whether it leans toward prohibition or sensible regulation.”
Balancing Morality, Taxation, and Liberty
The debate over online gaming in India has long revolved around three themes—morality, taxation, and liberty. While conservative voices argue that real-money gaming promotes addiction, others maintain that the distinction between “skill” and “chance” is well-established in Indian jurisprudence.
Games such as poker, rummy, and chess have been repeatedly recognized by courts as games of skill. Consequently, their blanket inclusion under PROGA’s prohibitory scope has raised constitutional red flags.
Many operators are advocating for a regulated licensing model similar to those used in the UK and Malta—where online gaming is permitted but tightly controlled through compliance audits, responsible gaming measures, and tax contributions.
The Road Ahead
As India awaits the Centre’s official reply and the next Supreme Court session on November 26, all eyes are on whether the judiciary will uphold the right to play and operate legitimate skill-based games.
The outcome could not only decide the fate of poker, fantasy sports, and esports platforms, but also influence future investment flows into India’s booming digital entertainment economy.
For now, operators and players alike remain in limbo—caught between legislative overreach and judicial scrutiny.
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