Supreme Court Indicates Regular Competitions, Tournaments May Be Excluded by New Online Gaming Law

New Delhi: The Supreme Court on Tuesday orally indicated that regular competitions and tournaments may be excluded from the ambit of the Promotion and Regulation of Online Gaming Act, 2025, as they do not come under the definition of “betting and gambling.”

The 2025 law bans real money games, related banking services, and advertisements.

A Bench of Justices J.B. Pardiwala and K.V. Viswanathan was hearing a request made by a chess player who said he played the game online as a livelihood and was about to launch an app.

Justice Pardiwala asked the counsel for the player, “India is a strange country… you say you are a player, that you want to play, it is your only source of income and you want to join these proceedings here… Are you betting or gambling? How do you raise an income?”

The counsel explained that his client was a chess player who participated in online tournaments.

Justice Pardiwala observed, “Then there is no problem for you [from the Act]. They [the government] do not object to tournaments… Tournaments are completely excluded… So why come here? Now, really, tell us, are you playing in tournaments or not?”

Additional Solicitor General N. Venkataraman, appearing for the Union Government, remarked that the petitioner “does not play tournaments.” The petitioner’s counsel denied that his client was engaged in betting or gambling, explaining that he paid a participation fee and competed for prizes in online tournaments.

Justice Pardiwala agreed to tag the plea with a batch of petitions filed by online gaming platforms challenging the new law. The Court scheduled the case for detailed hearing on November 26, even as senior advocate C.A. Sundaram and advocate Rohini Musa, appearing for the platforms, pressed for urgency.

Mr. Sundaram told the court, “We have been shut down for a month.”

In an earlier hearing, the senior counsel had argued that the law had left companies with no means to operate, forcing them to carry out layoffs. The platforms have sought an interim stay on the implementation of the 2025 Act.

The Bench directed the government to file a comprehensive counter-affidavit in response to the petitions.

The government has defended the law, saying it was necessary to curb the rapid spread of online money games that posed “serious risks for individuals, families and the nation.” It said online money games had exploited legal loopholes, caused deep social harm, and affected an estimated 45 crore people who collectively lost more than ₹20,000 crore playing such games.

On September 8, the Supreme Court had transferred to itself multiple petitions challenging the law that were pending before several State High Courts, including Delhi, Karnataka, and Madhya Pradesh.

The petitions by online platforms and stakeholders have argued that the Act violates the right to equality and freedom of expression, the principle of federalism, and the long-standing legal distinction between games of skill and games of chance.

The Centre, however, has maintained that the legislature cannot remain a mute spectator when online money gaming platforms contribute to addiction, financial ruin, money laundering, and even suicides linked to heavy losses. It further claimed that investigations had found some platforms were being used for terror financing and illegal messaging, compromising national security.

The government also pointed out that betting and gambling are already restricted under the Bharatiya Nyaya Sanhita, 2023 and various State laws, but the online gaming sector had remained largely unregulated until now.