Indian Government to Notify Online Gaming Act 2025, Establish Authority

The Indian government has told the Delhi High Court that the Promotion and Regulation of Online Gaming Act, 2025, though already signed by President Droupadi Murmu, has not yet taken effect but will soon be notified. Once that process is complete, a regulatory authority will be set up to classify banned online money games and issue rules for the industry.

Solicitor General Tushar Mehta, appearing for the Centre, reiterated that while online gaming is being promoted, formats involving money carry serious risks. “We are in the process of framing Rules and contemplating constituting the authority also. The government is promoting online gaming. We are not against it. But online money gaming results in addiction in children, suicides etc,” he told Chief Justice DK Upadhyaya and Justice Tushar Rao Gedela.

Delhi High Court’s Observations

The petition was filed by Bagheera Carrom (OPC), which is challenging the constitutionality of the Act. The company argued that the law was introduced too quickly, lacked consultation, and violated several constitutional rights.

The bench, however, made clear that the statute cannot be enforced until notification is issued. “Unless a notification is issued, this Act cannot come into being... your apprehension that you will be prosecuted is not live as of today,” the Chief Justice told the petitioner’s counsel. The judges also noted that issues such as e-sports regulation can only be addressed by the authority once it is established.

The matter was adjourned for eight weeks, with the expectation that the government would finalize rules during that period.

Petitioner’s Objections to the Law

Bagheera Carrom developed an online version of carrom, recognized internationally as a skill-based game. Its counsel described the Act as “ultra vires, unconstitutional, arbitrary, vague, disproportionate, violative of Articles 14, 19, and 21 of the Constitution.” The petition also argued that Parliament lacked legislative competence to enact such a law.

The company maintains that by banning all money-based online games, the law fails to distinguish between games of skill and games of chance. It argued that safeguards like age-gating, monetary limits, and prohibiting manipulative algorithms could have addressed risks without resorting to a full prohibition.

According to the petition, vague definitions of “online money game,” “e-sports,” and “online social game” create “a chilling effect” and leave legitimate businesses exposed to arbitrary prosecution. Despite compliance certifications and responsible gaming measures, the company said its operations remain under threat.

Wider Legal Challenges and Supreme Court Review

The Delhi case is one of three currently pending before Indian high courts. Head Digital Works, operator of the rummy and poker platform A23, has challenged the law in Karnataka, while Clubboom11 Sports & Entertainment, operator of Boom11 fantasy sports, has filed a petition in Madhya Pradesh.

The Union government has asked the Supreme Court to consolidate these cases to avoid conflicting judgments. Chief Justice of India Bhushan R. Gavai said on September 4 that the transfer plea would be heard on September 8.

Filed through the Ministry of Electronics and Information Technology, the Centre’s petition argued that all three cases raise identical issues: alleged violations of Articles 14, 19, and 21, questions of Parliament’s legislative power, and objections to the blanket ban on real-money games.

The 2025 Act includes penalties of up to three years in prison and fines of ₹1 crore for operators, with advertising punishable by up to two years in prison and fines of ₹50 lakh. While the Act encourages e-sports and casual gaming, its prohibition of money-based formats has become the focus of nationwide litigation.

For now, the law cannot be enforced until notification, but the dispute over its legality is set to reach the Supreme Court in the coming weeks.

Source:

India’s Government to Establish Authority for Online Gaming Regulation, Delhi High Court Directs Action, news.worldcasinodirectory.com, September 3, 2025