SC To Hear Centre's Plea Seeking Transfer Of Online Gaming Law Challenges

(MENAFN- Live Mint) The Supreme Court on Thursday agreed to hear the Centre's plea to transfer petitions challenging the constitutionality of the new law banning online money gaming from multiple high courts to the apex court.

Gaming companies have filed writ petitions before the high courts of Madhya Pradesh, Karnataka, and Delhi.

"Union has filed a transfer plea... the Promotion and Regulation of Online Gaming Act has been challenged before three high courts. If it can be listed on Monday (8 September) since it's listed for interim orders before the Karnataka high court," the counsel representing the Centre told the court.

The plea was mentioned before the Chief Justice B.R. Gavai-led bench, which directed it to be listed before the Justice J.B. Pardiwala-led bench on 8 September.

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Justice Pardiwala's bench had earlier heard challenges related to the 28% goods and services tax (GST) on online gaming for several months and had reserved its judgment.

To be sure, the Karnataka high court has also fixed 8 September to hear petitions challenging the new law.

On Tuesday, the Madhya Pradesh high court's two-judge bench denied an appeal seeking an injunction against the Union government notifying and enforcing the Promotion and Regulation of Online Gaming Act, 2025, which, in August, banned all online games involving financial transactions in India.

The petition was filed by Clubboom11 Sports & Entertainment Pvt. Ltd, a Gwalior-based online gaming company registered two years ago, which argued“constitutional infirmity” in the Act.

During the hearing, solicitor general Tushar Mehta, representing the Centre, argued that appeals pending before the Karnataka and Delhi high courts should be clubbed and transferred to the Supreme Court, rather than being heard individually.

On the same day, the Delhi high court, in a petition filed by Bagheera Carrom OPC Pvt. Ltd, took a similar stance.

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On 30 August, the Karnataka high court's single-judge bench also declined to stay the notification of the Act.

Mehta informed the courts that the Centre was in the process of notifying the law. Once notified, the ministry of electronics and IT (MeitY) will set up an authority to promote e-sports and casual games that do not involve money, and enforce rules to implement the law on the ground.

The Centre is expected to file its response in the Supreme Court by 8 September, opposing interim relief-including a request for a one-week notice prior to enforcement-sought by the online money gaming industry.

The legal disputes follow a rapid sequence of events in August. Within five days, the Union Cabinet approved and passed the law prohibiting the operation of any online game involving monetary transactions.

Union information technology minister Ashwini Vaishnaw justified the move, citing years of research showing how platforms such as Dream11, RummyCulture, My11Circle, and Mobile Premier League promoted gambling and money laundering.

The ban has already hit the industry hard. Mint reported on 1 September that companies, including Games24x7, MPL, and Baazi Games, have announced layoffs, with others expected to follow.

Earlier, industry associations warned Union home minister Amit Shah on 19 August that the blanket ban could threaten over 200,000 jobs across more than 400 companies.

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The Centre, however, has stood its ground. On 23 August, MeitY secretary S. Krishnan told Mint that the government has“followed all constitutional requirements to frame the law and is ready for any legal challenges mounted against it”.

This is not the first time the Supreme Court has consolidated petitions in the online gaming space. In 2024, the apex court transferred 27 writ petitions pending across nine state high courts challenging the 28% GST on online real-money gaming to itself for hearing.

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