Real-money gaming ban: Start-ups prepare legal fight against new law
What's the story
India's online gaming start-ups are gearing up to challenge the central government's blanket ban on money-based games. The Promotion and Regulation of Online Gaming Bill, 2025, was recently approved by the Union Cabinet. It seeks to prohibit not just playing but also payment and advertising for services like fantasy sports apps Dream11 and My11Circle, online rummy platforms RummyCulture and RummyCircle, among others.
Jurisdiction debate
Bill likely to face legal hurdles
The proposed legislation is likely to be challenged in the Supreme Court, with a focus on whether the central government can legislate in an area traditionally regulated by states. The bill doesn't differentiate between "skill" and "chance" games, which has been a point of contention in previous Supreme Court rulings. This omission could be a key factor in the upcoming legal battle.
Political lobbying
Industry groups warn of job losses, company shutdowns
As the bill is tabled in Parliament, industry groups are pushing for political intervention. They have warned that the ban could cost 200,000 jobs and force 400 companies to shut down. Five lawyers representing different online gaming start-ups at the Supreme Court have confirmed that legal action is being considered against this proposed legislation.
Interim relief
Legal experts weigh in on potential SC outcomes
Legal experts believe that if the bill becomes law and is challenged immediately, the Supreme Court may not strike it down at first hearing. However, there is a high chance it will grant interim relief to prevent irreparable harm while arguments are heard. This could include a stay on prosecutions or a status quo order against the implementation of this new law.
Industry concerns
Concerns raised over lack of consultation in bill drafting
Sajan Poovayya, a senior advocate at the Supreme Court, expressed concerns over the lack of industry consultation in drafting this bill. He warned that if it becomes law, it could be a game-changer for fast-growing online gaming firms. Arun Prabhu from Cyril Amarchand Mangaldas also criticized the government for ignoring existing frameworks that distinguish between skill and chance-based games in online platforms.
Challenge grounds
Start-ups have several grounds to challenge bill
The wide-ranging nature of the bill, covering criminal liability, advertising, and classification, gives start-ups several grounds to challenge it. They could argue that the law is arbitrary or irrational if it criminalizes activities previously deemed legal under the "game of skill" definition. The provisions on criminal liability and advertising are also broadly drafted, raising questions about intent and fairness.