Whalesbook
The Supreme Court of India has scheduled November 26 as the date to hear a consolidated set of petitions that challenge the validity of the Promotion and Regulation of Online Gaming Act, 2025. This marks the first central law intended to impose a nationwide prohibition on online games played for stakes. A bench comprising Justices JB Pardiwala and KV Viswanathan has directed the government to submit a detailed response to these petitions.
The Act, which was notified on August 22, criminalizes offering or participating in online games, whether they are classified as games of skill or chance. Offences under this law are designated as cognizable and non-bailable. The Bill was passed swiftly through both houses of Parliament and received Presidential assent shortly thereafter. This legislation represents a significant departure from the previous regulatory landscape, which was largely governed by state-level laws and judicial interpretations distinguishing between games of skill and chance.
Multiple constitutional challenges were filed against the Act in various High Courts, including the Delhi, Karnataka, and Madhya Pradesh High Courts. Petitioners, such as online platform Head Digital and other gaming operators, argue that the law infringes upon their fundamental rights, specifically under Articles 14 (equality before the law) and 19(1)(g) (right to practice any profession, occupation, trade, or business). The Supreme Court had previously taken over these cases from the High Courts upon a transfer plea filed by the Union government to avoid parallel proceedings.
Impact:
This development could significantly impact the online gaming industry in India, potentially leading to the shutdown of many operations, job losses, and a contraction of the sector. It also creates uncertainty for investors and businesses in this space. Rating: 7/10.
Difficult terms:
- Stakes: Refers to money or something valuable that is risked on the outcome of a game or event.
- Prohibition: The act of forbidding something, especially by law.
- Cognizable offence: An offence for which the police can arrest a suspect without a warrant, based on the First Information Report (FIR).
- Non-bailable offence: An offence where bail is not granted as a matter of right by the court; the court has discretion to grant or refuse bail.
- Constitutionality: The state of being in accordance with the constitution of a country.
- Fundamental rights: Basic rights that are guaranteed to all citizens by a country's constitution, which cannot be taken away by ordinary laws.
- Articles 14 and 19(1)(g): Articles from the Constitution of India. Article 14 guarantees equality before the law and equal protection of the laws. Article 19(1)(g) guarantees the right to practice any profession, occupation, trade, or business.
- Multiplicity of proceedings: The situation where multiple lawsuits are filed concerning the same or similar subject matter.