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Several companies are preparing to move the courts against the Promotion and Regulation of Online Gaming Bill 2025, according to a report
Online gaming apps
Several real-money gaming (RMG) companies are preparing to move the courts this week against the Promotion and Regulation of Online Gaming Bill, 2025, passed by Parliament on Thursday, Moneycontrol reported, quoting multiple sources.
The law prohibits online money games where users make deposits—directly or indirectly—with the expectation of winning returns. According to sources, companies are holding consultations on whether to file petitions individually or collectively, seeking a stay on the implementation of the Act.
However, industry bodies such as the E-Gaming Federation (EGF) and the All India Gaming Federation (AIGF) are unlikely to be petitioners, sources added.
Among the companies exploring legal options are Dream11, Gameskraft, and Head Digital Works, people in the know said. “It’s being discussed which high courts to approach,” one person privy to the deliberations told Moneycontrol.
What Will Be Challenged?
The petitions are likely to focus on Chapter III (Sections 5 to 7) of the Act, which mandates a complete prohibition on “online money gaming services.”
“Several companies are actively evaluating litigation as a necessary defensive measure, given the direct impact on operations, revenues, and investor confidence,” a second source said.
Union IT Minister Ashwini Vaishnaw, in an exclusive interview with Moneycontrolhad earlier said he “surely” expects legal challenges to the law.
Constitutional Grounds
Experts believe the strongest challenges will be anchored in Article 19(1)(g) of the Constitution, which guarantees the right to trade and business, arguing the bill imposes restrictions that go beyond the scope of Article 19(6).
“Challenges could also be raised on retrospective impact, where ongoing businesses and investments are disproportionately disrupted, and on arbitrary classification under Article 14, if certain operators or categories of games are singled out,” explained Navod Prasannan, Partner, King Stubb & Kasiva, Advocates & Attorneys.
Shoubhik Dasgupta, Partner, Pioneer Legal, noted that the Act fails to distinguish between games of skill and games of chance. “The principle that games of skill are legal businesses has been repeatedly upheld by courts. The entire online gaming industry—and lakhs of jobs—rests on this foundation,” he said.
Industry fallout
Industry estimates suggest the ban could wipe out 200,000 jobs, Rs 25,000 crore in FDI, and Rs 20,000 crore in tax revenues.
Ananay Jain, Partner, Grant Thornton Bharat, warned that blanket restrictions may stifle high-revenue segments like mobile gaming and tournament-based platforms.“Smaller start-ups and emerging developers could face compliance burdens and financial strain due to penalties and regulatory requirements,” he said.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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