The Promotion & Regulation of Online Gaming Act, 2025 – Legal Implications

Introduction

In August 2025, The Parliament of India enacted the Promotion and Regulation of Online Gaming Act, 2025 bringing sweeping changes to how real-money online gaming including fantasy sports, skill games, card games, etc are regulated. The law aims to protect users from financial risk, addiction, and misuse, it also imposes sweeping bans, penalties, and regulatory obligations which raise difficult legal, constitutional and commercial questions.

This blog explores the legal implications of this act, reviews recent case laws, examines how major game platforms are reacting and highlights likely constitutional/regulatory challenges ahead.  

 

KEY PROVISIONS OF THE ACT:

• All money games are prohibited even if they are claimed as “games of skill” (for example poker, rummy)

• Financial Institutions, banks, payment gateways are banned from facilitating transactions connected to such online money games

• Violations are cognizable and non-bailable offences

• Wallet money/deposits previously held  by platforms are supposed to be safe, withdrawal of existing funds is allowed, though new deposits are banned.

Some major online gaming/fantasy platforms that are directly affected are Dream11, MPL, Poker Baazi, Zupee, My11circle, Winzo and Probo.

 

CONSTITUTIONAL IMPLICATIONS:

Freedom of Trade/profession (Article 19 (1) (g))

Several High court petitions such as A23 vs Union of India (Karnataka High Court, Aug 2025) argue that banning all real-money games, including skill-based games, accounts to an unconstitutional restriction of the freedom to practice a profession of carry on a trade or business.

Platforms like Dream11, Zupee, and A23 Rummy had been operating under earlier court rulings that protects “games of skill” from blanket bans. Now with this act banning all online money games, these companies are arguing that the law is overbroad and restricts legitimate business and fails to meet the reasonable restrictions test under Article 19 (6).

Equality before law (Article 14)

Petitioners also challenge the act under Article 14, claiming: the law treats games with monetary stakes and monetary games unequally without valid justification. And there’s no clear rationals for banning all monetary games regardless of whether they involve skill or chance.

Legislative Competence & Federalism

Gambling and betting are subjects listed under Entry 34 of the State list (list II) in the several schedule of the Indian constitution. Petitioners argue that the central government lacks the authority of legislate on this subject through a parliamentary law. The act invokes central powers(such as entry 97 – residuary powers) but this is disputed, as past supreme court rulings have reinforced state’s primacy over gabling regulation.

Recent Developments: Legal challenges & Industry Reactions

On August 28, 2025, A23, a well known online skill-based gaming platform (known for A23 Rummy), became the first company to file a constitutional challenge to the promotion & regulation of online gaming act, 2025, in the Karnataka high court. The petition argues that the act wrongly criminalizes games of skill, which courts have previously held to be legal.

Real-Money Game platforms begin shutdowns

Following the enforcement of the new law, several major gaming platforms have either suspended or shut down their real-money operationsin India, including: Dream11, MPL, PokerBaazi, My11circle, Zupee, WinZo, Probo

In a more drastic move, Flutter, the global patent company of Junglee games (Known for Junglee Rummy), has completely shut down it’s real-money gaming operations in India after the law was passed. Flutter cited legal uncertainty and regulatory risk as reasons for withdrawal, marking a major international exit from the Indian gaming market.

Courts Refuse to stay the law (So Far)

Despite the multiple constitutional challenges filed in different high courts including in Karnataka, Delhi, and Madhya Pradesh. No court has granted a stay on the implementation of the law. This means the act remains fully in force until the petitions are heared in full and final orders are passed.

To avoid conflicting judgements from different high courts, the union government has requested the supreme court to transfer and consolidate all pending petitions challenging the act. If accepted, the matter could be heard by the apex court soon, setting  national precedent on the constitutionality of the law.

CONCLSION:

The promotion & Regulation of online gaming act, 2025 has completely changes the landscape of online gaming in India by banning all real-money games, including those based on skill. While the government defends the law as necessary to protect users from addiction and financial harm, many gaming companies and legal experts argue it unfairly targets legitimate businesses and violates fundamental rights. Popular platforms like Dream11, MPL, and A23 have already suspended operations, and multiple legal challenges are now pending in High court across the country. As the supreme court may soon step in to decide the law’s fate, the future of online gaming in India hangs in the balance affecting not just businesses, but also millions of users who have made gaming a part of their everyday

Author: Ritika Khatri, in case of any queries please contact/write back to us via email to chhavi@khuranaandkhurana.com or at  Khurana & Khurana, Advocates and IP Attorney.