Supreme Court signifies common competitions, tournaments could also be excluded by new on-line gaming legislation

The Supreme Court on Tuesday (November 4, 2025) orally indicated that common competitions and tournaments could also be excluded from the ambit of the Promotion and Regulation of Online Gaming Act, 2025 as they don’t come underneath the definition of ‘betting and gambling’.

The 2025 legislation bans actual cash video games, associated banking companies and ads.

What does the brand new on-line gaming Act define? | Explained

A Bench of Justices J.B. Pardiwala and Ok.V. Viswanathan was listening to a request made by a “chess player” who performs the sport on-line as a “livelihood” and mentioned he was about to launch an app.

“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?” Justice Pardiwala requested the counsel for the participant.

The counsel, talking on behalf of his consumer, mentioned he was a chess participant who participated in “tournaments”.

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

Additional Solicitor General N. Venkataraman, showing for the Union Government, remarked the petitioner “does not play tournaments”.

The counsel for the petitioner denied his consumer was into betting or playing. He mentioned these have been on-line tournaments organised by firms. “I pay a participation fee and take a prize,” he submitted.

Justice Pardiwala agreed to tag the plea with a batch of petitions filed by on-line platforms which have challenged the brand new legislation.

The Court scheduled the case for detailed listening to on November 26 whilst senior advocate C.A. Sundaram and advocate Rohini Musa, showing for the platforms, conveyed urgency.

“We have been shut down for a month,” Mr. Sundaram submitted.

In a earlier listening to, the senior counsel had complained that the legislation had not left the businesses with any “avenue of functioning”, compelling them to resort to lay-offs. The firms have sought an interim keep of the implementation of the 2025 Act.

The Bench ordered the federal government to file a complete counter-affidavit in Court in response to the petitions.

The authorities has argued that the legislation was essential to curb the speedy mushrooming of on-line cash video games creating “serious risks for individuals, families and the nation”. It has maintained that on-line cash video games had exploited loopholes within the legislation and triggered deep social hurt. The Centre has argued that an estimated 45 crore individuals have been negatively affected by on-line cash video games and confronted a lack of greater than ₹20,000 crore enjoying them.

On September 8, the Supreme Court transferred to itself separate petitions difficult the legislation, pending scattered throughout numerous State High Courts, together with Delhi, Karnataka and Madhya Pradesh.

The writ petitions filed by on-line platforms and stakeholders within the excessive courts had argued that the legislation was a violation of the best to equality and freedom of expression, federalism and the settled distinction drawn between video games of talent and people of likelihood.

The authorities has argued that the legislature can’t be a mute spectator when on-line cash gaming platforms elevate critical issues as a consequence of experiences of dependancy, monetary losses, cash laundering, and even circumstances of lack of lives linked to heavy financial losses.

The Centre has argued that investigations have revealed that “some gaming platforms were being used for terror financing and illegal messaging, which compromise the country’s security”.

Besides, it said that playing and betting have been already restricted underneath Indian legal guidelines such because the Bharatiya Nyaya Sanhita, 2023, and by numerous State legislations. The on-line area had remained largely unregulated.