Centre Defends Online Gaming Ban in Delhi High Court, Says New Law Will Soon Be Notified

The Union government has told the Delhi High Court that it is in the process of notifying the Promotion and Regulation of Online Gaming Act, 2025, and will also constitute a regulatory authority with supporting rules under the new law. The assurance came during the hearing of a petition filed by an online carrom game developer challenging the constitutionality of the legislation.

Appearing for the Union, Solicitor General Tushar Mehta told a bench of Chief Justice DK Upadhyaya and Justice Tushar Rao Gedela that the government was not opposed to online gaming as such but was only against money-based online games. He said such platforms often lead to addiction and in some cases even suicides among children.

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. The Act bans all online games played for stakes, whether based on skill or chance. It prohibits advertising of such games, disallows banks and intermediaries from processing payments, and makes offences under the statute cognisable and non-bailable. Violations are punishable with imprisonment of up to three years and fines of up to one crore rupees.

The petition before the High Court was filed by Bagheera Carrom (OPC) Pvt. Ltd., which has developed an online carrom platform. The company has challenged the Act as unconstitutional, arbitrary and ultra vires. It argued through counsel Udayan Jain that the legislation was passed without any stakeholder consultation and infringes fundamental rights under Articles 14, 19 and 21 of the Constitution. It was also argued that the law violates federal principles, due process, and the doctrine of separation of powers.

The petition states that the Act indiscriminately prohibits all money-based games regardless of whether they involve skill or chance. Carrom, according to the company, has long been judicially recognised as a game of skill. The plea points out that offline carrom is regulated by the All India Carrom Federation and internationally by the International Carrom Federation. The company contends that by placing carrom in the same category as games of chance, the legislation unfairly criminalises legitimate activity and threatens the livelihood of those engaged in developing and promoting such games.

The bench noted during the hearing that the Act has not yet been notified, and therefore some of the apprehensions raised may not be live issues at this stage. Chief Justice Upadhyaya remarked that one cannot assume that the authority contemplated under the statute will not be constituted. The Court recorded the submission of the Solicitor General that notification of the Act and constitution of the authority are underway.

The case may have significant implications for the online gaming industry, which has grown rapidly in India over the last few years. Industry estimates suggest the market is worth more than twenty thousand crore rupees annually and provides direct and indirect employment to thousands of young professionals. Until now, online gaming has operated under a patchwork of state laws and judicial rulings that distinguished between games of skill and games of chance. The new law does not make that distinction and instead bans all games played for stakes.

Several past Supreme Court judgments had recognised games like rummy, poker and carrom as predominantly skill-based and therefore outside the scope of state gambling prohibitions. The petitioner has relied on this jurisprudence to argue that Parliament lacks competence to ban such games outright. The company has also said that the blanket ban is disproportionate and fails to consider less intrusive alternatives such as regulation and age restrictions.

For now, the High Court has not granted any interim relief. The matter will be taken up once the rules are framed and the regulatory authority under the Act is formally constituted. Until then, operators like Bagheera Carrom remain in a state of uncertainty, waiting to see whether the implementing framework leaves any room for skill-based platforms to continue operating lawfully.

Case Title: Bagheera Carrom (OPC) Pvt. Ltd. v. Union of India

Hearing Date: 3 September 2025

Bench: Chief Justice DK Upadhyaya and Justice Tushar Rao Gedela