India's Supreme Court has consolidated all pending lawsuits against the "2025 Online Gaming Promotion and Regulation Act" and has taken over cases originally handled by the High Courts of Madhya Pradesh, Karnataka, and Delhi.
A bench consisting of Justices JB Pardiwala and KV Viswanathan approved the central government's request, meaning that the Supreme Court will directly determine the constitutional validity of the act in the future.
Attorney General Tushar Mehta noted that the legal issues related to the previous case of imposing a 28% Goods and Services Tax (GST) on online real-money games highly overlap, and consolidating the cases will save time.
The act, effective from August 2025, completely bans online games involving monetary transactions, excluding only esports and casual games.
Some operators like Clubboom11 Sports & Entertainment and Bagheera Carrom OPC have challenged the act but did not receive interim relief. The Madhya Pradesh High Court last week outright rejected an appeal to suspend the act. The new regulations impose criminal penalties on operators, advertisers, and financial intermediaries, with the government insisting this is based on multiple studies linking platforms like Dream11 and MPL to gambling and money laundering.
Industry organizations warn that the ban has already led to layoffs at companies like Games24x7 and Baazi Games, potentially threatening 200,000 jobs in the future. The Supreme Court's decision will be crucial in determining the fate of India's online gaming industry.
Following the implementation of the act, Gujarat's Bharuch police raided a farmhouse in Vatariya village, dismantling an illegal gambling ring, detaining six suspects, and seizing 418,000 rupees (approximately $5,000) in cash. The police revealed that the property was owned by Fatesinh Vasava, a former Congress candidate who switched to the Bharatiya Janata Party after the 2022 state elections.
The operation was conducted by the regional crime investigation department based on a tip-off, with the night patrol team capturing the suspects during the raid, with one still at large. According to Indian law, unlicensed gambling is a criminal offense, punishable by imprisonment and fines.
Due to Vasava's party affiliation, the case has sparked political controversy. He had represented the Congress in the Jagadia constituency, losing to a BJP candidate before defecting to the ruling party. The BJP has confirmed awareness of the situation and will decide on disciplinary actions after review.
This case highlights the complexity of gambling issues at the local political and security levels, and also brings public attention to the potential connections between politics and illegal gambling.
