Karnataka High Court Defers Hearing on Online Gaming Act Challenge

The Karnataka High Court on September 8, 2025, deferred the hearing on writ petitions challenging the newly enacted Promotion and Regulation of Online Gaming Act, 2025, as the Centre has moved to consolidate similar challenges before the Supreme Court.

Last month, Head Digital Works, the parent company of A23, challenged the validity of the Act in the Karnataka High Court, arguing that it violated fundamental constitutional rights, including the freedom to conduct business under Article 19(1)(g), and infringed on the established legal distinction between games of skill and games of chance

The petition emphasizes that Parliament has overstepped its authority, contending that gaming regulation traditionally falls within state jurisdiction, and brands the Act as arbitrary and a violation of the right to livelihood.

During the August 30 hearing, the court declined to grant a stay on the Act, even though it has not yet been notified, rejecting interim relief sought by the industry. Petitioners had requested either a postponement of the Act’s notification until hearings conclude, or at least one week's notice prior to enforcement.

"This Court at this stage opines that the Union must be at liberty to complete its pleadings by the next date of hearing at least insofar as the petitioner's request for interim order," the bench of Justice B.M. Shyam Prasad noted. 

Meanwhile, the Centre has approached the Supreme Court seeking to transfer all pending high court petitions, filed in Karnataka, Madhya Pradesh, and Delhi, to the apex court to ensure uniformity and avoid conflicting judgments. This plea was mentioned before a bench led by Chief Justice B. R. Gavai, and has been scheduled for consideration shortly.

The Promotion and Regulation of Online Gaming Bill, 2025 was introduced in the Lok Sabha on August 20, cleared by both Houses of Parliament within two days through a voice vote, and received Presidential assent on August 22. It marks India’s first federal attempt to regulate online gaming, aiming to ban real-money gaming outright, while carving out space for e-sports and casual online games. The Act envisions establishing a National Online Gaming Commission (NOGC) to oversee licensing, classification, responsible-gaming measures, and enforcement of penalties.

The legislation is built on two clear objectives: to promote and regulate the legitimate and beneficial aspects of online gaming, and to protect individuals, especially youth and vulnerable groups, from the harmful consequences of online money gaming. Moving the Bill, Electronics and IT Minister Ashwini Vaishnaw had called online money gaming a “public health menace”, pointing out that around 45 crore users collectively lose nearly Rs. 20,000 crore annually on such platforms. The law is divided into six chapters, each addressing a different aspect of regulation, prohibition, and enforcement.

Several past Supreme Court judgments have recognised games like rummy, poker and carrom as predominantly skill-based and therefore outside the scope of state gambling prohibitions.

Case Title: Head Digital Works Private Limited vs Union of India

Hearing Date: September 8, 2025

Bench: Justice B.M. Shyam Prasad