India’s Supreme Court signals potential carve-out for skill-based online gaming

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By Chris Horton
Fri 07 Nov 2025 11:37
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  • The court said the government did not appear to oppose excluding tournaments from the Act.
  • The Union government must submit a detailed response before the next hearing on November 26.
  • The case will determine how India legally defines the boundary between skill and chance in online gaming.
Indian high court
  • Background to the case
  • Key arguments before the court
  • What happens next
The Supreme Court of India has suggested that skill-based online tournaments may be exempt from the country’s new gaming ban.
The Supreme Court of India indicated during a hearing on Tuesday that online tournaments and competitions based on skill could be excluded from the scope of the Promotion and Regulation of Online Gaming Act, 2025. 

The court was hearing a batch of petitions challenging the legislation, which petitioners argue imposes a blanket ban on real-money online gaming and fails to distinguish between games of skill and games of chance.

The bench observed that the government did not appear to object to the exemption of tournaments from the ban and suggested that contests based purely on skill may be “completely excluded” from the Act. 

The court has directed the Union government to file a detailed response by November 26, 2025, when the matter will next be heard.

Background to the case

The Promotion and Regulation of Online Gaming Act, 2025, enacted in August and effective from October 1, bans “online money games” and directs banks and payment processors to block related transactions. The law also restricts advertising and sponsorship of such games.

The Act was introduced amid rapid growth in India’s online gaming sector and growing concerns about youth participation, excessive spending, and the proliferation of offshore gambling platforms. 

Several gaming companies and professional players have challenged the law, arguing that it threatens legitimate, skill-based activities such as fantasy sports, e-sports, rummy and chess tournaments.

During Tuesday’s hearing, a professional chess player told the bench that his livelihood was at risk because the Act criminalises participation in online tournaments that involve entry fees. 

The Supreme Court noted this submission and asked the government to clarify whether the law was intended to apply to such activities.

Key arguments before the court

Petitioners have argued that the Act fails to draw a clear distinction between skill-based gaming, which has been upheld as legal by several previous court rulings, and games of chance, which constitute gambling and fall under state control.

Counsel for the petitioners also submitted that the legislation violates Article 19(1)(g) of the Constitution, which guarantees the right to practise any profession or carry on any trade. 

The government’s counsel stated that the intent of the Act was to curb gambling and protect consumers but did not provide clarity on the treatment of skill-based competitions.

The bench recorded that “tournaments may be completely excluded” from the ban and asked for a comprehensive response on how the government defines skill versus chance under the new law.

What happens next

The case will return to the Supreme Court on November 26, 2025, when the Union government is expected to file its detailed affidavit explaining the legislative intent and scope of the Act. 

The outcome could determine whether professional e-sports, chess, and fantasy-sports tournaments can continue under regulated frameworks or remain prohibited under the current regime.

For now, enforcement of the Act continues, and payment restrictions on real-money gaming remain in effect. The gaming industry is awaiting the next hearing for clarity on how the ruling might affect the legality of online tournaments and skill-based contests.

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