The Indian online gaming industry, one of the fastest-growing sectors in the country’s digital economy, has been brought to a standstill. On October 7, 2025, the Supreme Court of India deferred hearings on petitions challenging the new law banning all real-money online games, pushing the matter to after the Diwali vacation in November.
While this may seem like a minor scheduling delay, for gaming companies, investors, and the more than 200,000 workers connected to the sector, it is a critical extension of an already devastating freeze.
Further read Breaking the Game: The Devastating Impact of India’s 2025 Online Gaming Ban
The Courtroom Drama
A bench comprising Justices J.B. Pardiwala and K.V. Viswanathan briefly heard the petitions filed by several gaming firms, led by Head Digital Works Pvt. Ltd. (operator of RummyCulture and A23).
Senior advocate C.A. Sundaram, representing the petitioners, urged the court to provide interim relief:
“This has national ramifications. Our businesses are completely closed, employees have been laid off, and there is no avenue to function. It’s a huge issue for us.”
On the other side, Additional Solicitor General N. Venkataraman, representing the Union government, noted that the new petitions overlap with the ongoing 28% GST case on online gaming, where the Supreme Court has already heard extensive arguments and reserved judgment.
“Only the Union has powers, but now the same counsels are arguing that the Union has no powers,” he remarked.
Sundaram pushed back, clarifying that the current petitions do not dispute the Union’s authority to legislate but instead challenge the manner in which that authority has been exercised through a sweeping ban.
All Petitions Consolidated in Supreme Court
By allowing the Centre’s request, the Supreme Court consolidated all challenges pending in the Madhya Pradesh, Karnataka, and Delhi High Courts, ensuring that the matter will be decided only by the apex court.
This consolidation mirrors the court’s earlier move in 2024, when it transferred 27 writ petitions from nine different high courts related to the 28% GST on real-money gaming. That case remains undecided, adding to the legal uncertainty hanging over the sector.
How the Ban Was Passed
The controversy stems from a law introduced and enacted in August 2025, which prohibits all online games involving monetary stakes. This includes both chance-based games like Teen Patti or roulette and skill-based games such as poker, rummy, or fantasy sports.
The law was cleared by the Union Cabinet and passed within five days, with MeitY Minister Ashwini Vaishnaw defending the move as necessary to curb gambling and money laundering.
Platforms such as Dream11, MPL, My11Circle, and RummyCulture were specifically cited in the government’s argument, with officials claiming that their models blurred the line between gaming and gambling.
Industry Fallout: Layoffs, Losses, and Lockdowns
The effects were immediate and severe:
- Games24x7, MPL, and Baazi Games initiated mass layoffs, with more expected in the coming weeks.
- Industry associations warned Union home minister Amit Shah that over 200,000 jobs across more than 400 companies were at risk.
- India’s advertising and sponsorship market, heavily reliant on fantasy sports and poker operators, has already taken a $1 billion hit, with cricket—the country’s most lucrative sport—bearing the brunt.
A founder of a mid-sized gaming firm (who requested anonymity) told BPN:
“We raised capital on the premise that skill-based games were protected under Indian law. Overnight, that framework collapsed. We’ve had to let go of 70% of our staff. If the court doesn’t intervene, we may not exist by next year.”
Poker and the Skill vs. Chance Debate
For poker players and operators, the law represents the harshest blow yet in a long-standing skill vs. chance debate. While multiple Indian courts have previously recognized rummy and poker as games of skill, the new law makes no such distinction.
In effect, poker apps, online cash games, and tournament platforms have been forced to shut down operations completely.
This raises questions not only for India’s poker ecosystem but also for international operators eyeing the country as an emerging market. With over 100 million online gamers, India was considered one of the most promising frontiers for poker’s digital expansion.
Global Comparisons
India’s hardline stance echoes moves by other governments grappling with the rapid rise of online gaming:
- China has imposed strict bans on real-money gaming and even limited playtime for minors in non-monetary games.
- The United States has taken a state-by-state approach, with regulated real-money online poker and sports betting flourishing in states like New Jersey, Michigan, and Nevada.
- Europe has generally leaned toward regulation rather than prohibition, with markets like the UK, Malta, and Spain building licensing frameworks that balance consumer protection with industry growth.
Against this backdrop, India’s blanket prohibition stands out as one of the most restrictive approaches globally, raising concerns about capital flight and talent drain.
Government’s Defense
Despite industry protests, the Ministry of Electronics and Information Technology (MeitY) has stood firm. Secretary S. Krishnan told Mint in late August:
“We followed all constitutional requirements to frame the law and are ready for any legal challenges.”
Government officials argue that while gaming has economic value, the social costs of addiction, gambling debt, and money laundering justified strong intervention.
What Happens Next?
The next hearing, expected in November 2025, will be crucial. Possible scenarios include:
- Interim Relief Granted – The Supreme Court could allow companies to temporarily resume operations until a final verdict is reached.
- Ban Upheld – If the law is upheld, India’s real-money gaming industry could face a permanent shutdown, forcing firms to pivot abroad or exit entirely.
- Modified Framework – The court may strike down parts of the law, opening the door to regulated gaming, similar to what many countries have adopted.
A Defining Moment for India’s Digital Economy
The stakes extend beyond gaming. With India positioning itself as a global technology hub, the treatment of its digital-first industries is closely watched by investors worldwide.
For the poker community, the verdict will decide whether India becomes a regulated giant in online poker and skill gaming—or whether the industry collapses under prohibition.
As of now, the sector waits in suspended animation. With startups closing shop, employees losing livelihoods, and players losing access to games they’ve long considered skill-based, the coming months could shape the future of India’s $3 billion real-money gaming market.
And for poker in particular, the question remains: will the Supreme Court recognize it as a skill game worthy of protection, or lump it with gambling under a nationwide ban?
One thing is certain: November’s hearing could change the face of Indian gaming forever.
Source Mint
Frequently Asked Questions (FAQ)
Q1: What is the new online gaming law in India?
The law, passed in August 2025, prohibits all online games involving monetary stakes. This includes both games of chance (like Teen Patti or roulette) and games of skill (like poker, rummy, and fantasy sports).
Q2: Why did the Indian government ban money gaming?
The government has cited concerns about gambling addiction, money laundering, and fraud. Officials also argue that the distinction between skill-based and chance-based games is being misused by companies to promote gambling under the guise of gaming.
Q3: Which companies are affected by the ban?
Major platforms such as Dream11, MPL, Games24x7, RummyCulture, My11Circle, and Baazi Games have been forced to shut down their money-gaming operations in India. Hundreds of smaller startups have also been impacted.
Q4: How has the gaming ban affected jobs and the economy?
Industry bodies estimate that more than 200,000 jobs are at risk across over 400 companies. The ban has also dealt a blow of nearly $1 billion to India’s advertising and sports sponsorship markets, particularly in cricket.
Q5: What is the role of the Supreme Court in this matter?
The Supreme Court of India has consolidated all petitions challenging the ban and will deliver the final ruling. The next hearing is scheduled for November 2025. Until then, the industry remains shut.
Q6: What happens if the Supreme Court upholds the ban?
If the ban is upheld, it could mark the end of India’s real-money gaming ecosystem, forcing companies to pivot to overseas markets or non-monetary models. For poker players, it would mean the loss of regulated online platforms in India.
Q7: Is poker considered a skill game under Indian law?
Indian courts have historically recognized poker and rummy as games of skill. However, the new law does not differentiate between skill and chance games—putting poker in the same category as gambling for now.
Q8: How does India’s approach compare to other countries?
- United States: Allows regulated real-money gaming on a state-by-state basis.
- Europe: Operates under licensing frameworks (UK, Malta, Spain).
- China: Maintains strict bans on money gaming and restricts even casual gaming.
India’s current stance is one of the toughest globally, with a blanket prohibition.
Q9: What should players and companies expect next?
All eyes are on the November 2025 Supreme Court hearing. The court could provide interim relief, uphold the ban, or direct the creation of a regulated gaming framework. Until then, money gaming platforms remain closed.
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