The Supreme Court of India, on November 4, 2025, stated that regular skill-based competitions and tournaments — including online chess — may not be covered by the Promotion and Regulation of Online Gaming Act, 2025, as they do not meet the legal definitions of 'betting' or 'gambling' under the law.
This clarification came during a court hearing involving a group of petitions that challenge the Online Gaming Act.
The Act prohibits real-money games, related banking services, and advertisements in India.
Court’s Observations on Online Tournaments
A bench of Justices J.B. Pardiwala and K.V. Viswanathan was examining a plea from an online chess player who claimed to earn a living through digital tournaments and was planning to launch his own app.
Justice Pardiwala questioned the counsel representing the petitioner, asking, "India is a strange country… you say you are a player, that you want to play, and it is your only source of income.
Are you betting or gambling? How do you earn?"
When the counsel clarified that the petitioner was only participating in skill-based tournaments, the bench responded,
"Then there is no problem for you under this Act.
The government does not object to tournaments. They are completely excluded."
However, Additional Solicitor General N. Venkataraman, who appeared for the Union Government, argued that the petitioner was not merely participating in tournaments.
The Court then grouped the plea with other petitions filed by online gaming platforms that have challenged the new Act, setting the next detailed hearing for November 26, 2025.
Online Gaming Firms Seek Urgent Relief
Senior advocates C.A. Sundaram and Rohini Musa, who represent the online platforms, highlighted the urgency of the matter.
"We have been shut down for a month," Sundaram stated, noting that the new law has compelled several gaming companies to suspend operations and lay off employees.
The Online Gaming Act, 2025, was introduced to regulate the rapidly expanding digital gaming sector.
It prohibits real-money gaming, bans advertisements promoting such platforms, and restricts financial services connected to them.
Centre Defends the Act as a Step Toward Public Safety
The Central Government, in its defense, told the Court that the law was essential to address the rapid growth of online money games, which have caused addiction, financial losses, and even tragic incidents of suicide linked to monetary losses.
According to government data, over 45 crore Indians have been negatively affected by online money games, resulting in losses exceeding â‚ą20,000 crore.
Officials also argued that investigations found certain gaming platforms being used for terror financing and illegal communications, presenting a national security risk.
The Centre emphasized that while traditional State and national laws such as the Bharatiya Nyaya Sanhita, 2023, restrict gambling and betting, the online gaming space had remained largely unregulated until now.
Background: Constitutional Challenges
Multiple writ petitions challenging the Act were earlier filed in the Delhi, Karnataka, and Madhya Pradesh High Courts.
On September 8, 2025, the Supreme Court transferred all such cases to itself to ensure a uniform interpretation of the law.
The petitioners argue that the Act violates fundamental rights such as the right to equality, freedom of expression, and the long-established distinction between games of skill and games of chance.
The Supreme Court will now deliberate on whether the Promotion and Regulation of Online Gaming Act, 2025, strikes the right balance between consumer protection and digital innovation in India’s booming gaming industry.
Disclaimer
Online gaming and real-money gaming platforms are subject to regulation under Indian law.
This article is for informational purposes only and should not be interpreted as legal or investment advice. Fixkhabar shall not be responsible for any losses incurred based on this content.
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