Promotion and Regulation of Online Gaming Act challenged in Delhi High Court

Bagheera Carrom (OPC) Private Limited, an online carrom game platform, has moved the Delhi High Court challenging the recently introduced the Promotion and Regulation of Online Gaming Act, 2025 which bans online real money games [Bagheera Carrom (OPC) Pvt. Ltd. v. Union of India]..The matter was briefly heard today by a Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela.Chief Justice Upadhyaya noted that the Centre is yet to constitute an authority to oversee the implementation of the gaming law, which also aims to promote electronic games that do not involve real money stakes. "Until you constitute the authority and promulgate the rules, you will not be able to work on the act," the Chief Justice said. .Representing the Central government, Solicitor General Tushar Mehta defended the law by pointing out that there is public interest in banning online real money games. He added that the government is in the process of setting up an authority under the Act. "We are in the process of making rules and constituting the authority also. The government is promoting online gaming, but online money game results in addiction of children, suicide," SG Mehta said. The Court will hear the matter next after eight weeks..The 2025 Act in focus, which recently received Presidential assent after being passed by both Houses of Parliament last month, is yet to be notified as having taken effect.It seeks to promote electronic games, but bans such games if they involve real money stakes. The law criminalises offering or playing online money games, irrespective of whether they are games of skill or chance, with offences classified as cognisable and non-bailable..Bagheera has contended before the Delhi High Court that the Act was brought about with undue haste and without due stakeholder consultation, leading to a violation of fundamental rights. It highlights that the new law indiscriminately bans all forms of online real money games regardless of whether they are games of chance or skill. As per Bagheera's plea, it developed the online version of carrom, which is judicially recognised as a game of skill and is regulated offline nationally by the All India Carrom Federation and internationally by the International Carrom Federation. It has invested heavily to ensure that its platform is compliant with the earlier laws and regulations on online gaming, the petitioner pointed out.It even obtained certification from the E-Gaming Federation, confirming that its platform is skill-based and does not involve wagers or betting, the plea added. However, the new law will expose it to criminal prosecution and financial ruin, despite its efforts to uphold responsible gaming practices, it has contended.According to Bagheera, by introducing such a law on gaming, the Central government has also trespassed into the domain of State legislatures since “betting and gambling” and “sports, entertainment, and amusements” are subjects found in the State List of law-making subjects in the Constitution. Hence, the 2025 Gaming Act is liable to be struck down as ultra vires, unconstitutional, arbitrary, vague, disproportionate, and violative of Articles 14 (equality and non-discrimination), 19 (freedoms, including right to trade), and 21 (right to life and liberty) of the Constitution.In the alternative, Bagheera argued that the Court could consider reading down the 2025 Act so that games of skill are continued to be permitted, even if they involve real money stakes. Bagheera's plea was filed through advocates Harsh Jaiswal, Aadya Mishra, Geetika Vyas and Ranjan Mishra. .The law is under challenge before the Karnataka High Court as well by Head Digital Works Private Limited, one of the largest online gaming operators in the sector. The Karnataka High Court matter is slated to be heard next on September 8.