CHALLENGE TO THE CONSTITUTION: THE ONLINE GAMING BILL 2025

ABSTRACT

On 22 August 2025, the President passed the Promotion and Regulation of Online Gaming Act, 2025. This Act is one of the most significant legislative works in India’s governance toward the digital landscape.

The Act emphasizes banning all online money gaming. It asserts a ban on electronic games played for money purposes while promoting e-sports, which are recognized under the National Sports Governance Act, 2025 as organized, competitive, and enhancing mental ability, skills, and strategic thinking.

The Act also imposes punishments on offenders who violate its provisions.

However, by passing this law, sudden economic destruction followed—apps like MPL and Dream11 shut down, leading to immense revenue losses for several platforms.

The first constitutional challenge against the Act came from Indian Gaming Company A23, which argued that the law is paternalistic, violates the freedom to practice trade, and unfairly prohibits skill-based online gaming.

This article discusses how the Promotion and Regulation of Online Gaming Act, 2025 interacts with constitutional rights, economic freedoms, and the future of online gaming services—while addressing its harmful effects.

INTRODUCTION

Over the past few decades, India has witnessed a surge in internet usage, smartphones, and online gaming. This rapid growth has raised concerns regarding health issues, mental pressure, and addiction to online games—especially money-based ones that border on gambling.

To address this, the Act was introduced to regulate online gaming platforms through a comprehensive framework, monitor their users, and prevent the spread of money-based games.

This article explains the features of the Act, challenges in its implementation, and the regulatory concerns surrounding digital gaming in India.

KEY PROVISIONS OF THE ACT

The Act has been enforced at the national level, covering all states, while also addressing access for users outside India. Key terminologies under the Act include:

• Online Game – Games played via the internet and accessible through digital devices.
• Online Money Games – Games relying on monetary stakes, with the expectation of financial gain.
• E-sports – Recognized as legitimate games promoting skills, strategy, and competition.
• Other Stakes – Non-monetary risks such as reputation, shares, or property.

To strengthen e-sports, the Act empowers the Central Government to:

• Establish training academies and research centers,
• Launch campaign schemes,
• Formulate guidelines, and
• Organize e-sports events.

At the same time, the Act makes a strict ban on money-based online games, prohibiting their advertising or facilitation.

Online Gaming Authority

The Act creates a regulatory authority consisting of:

• A Chairperson,
• Appointed Ministers, and
• A designated authority/agency to perform regulatory functions.

This authority’s role is to determine whether an online game qualifies as a “monetary online game” and register games accordingly.

Penalties

• Offering money-based gaming services: Fine up to ₹1 crore or imprisonment up to 3 years.
• Advertising money-based games: Fine up to ₹50 lakh or imprisonment up to 2 years.

Both are recognized as cognizable offences under the Bhartiya Nagarik Suraksha Sanhita.

CONSTITUTIONAL GROUNDS OF CHALLENGE

The Act has been challenged on the grounds of violating:

• Article 14 – Right to equality before the law,
• Article 19(1)(g) – Freedom to practice any trade or business,
• Article 19(6) – Restrictions on trade must be reasonable,
• Article 21 – Right to life and personal liberty.

Indian Gaming Company A23 argues that the Act violates constitutional rights and negatively impacts legitimate enterprises.

CASE LAWS

• Aman Dewangan vs. State of Chhattisgarh (2025)
  On 4 July 2025, police found a person betting on an IPL cricket match through Allpanelexch.app and goexch09.com using his mobile phone near the State Bank of India.
• Pauly Kadakkan vs. State of Kerala (2021)
  A PIL sought mechanisms to regulate online gambling and betting. The petitioner requested that online gambling via phones, computers, and cyberspace be declared illegal and unlawful.
• S. Muthur Kumar vs. Union of India (2021)
  A PIL sought a ban on online gaming after several deaths linked to online Rummy addiction.

ARGUMENTS CONCERNED WITH THE ACT

The main justification for this Act is the rising addiction to online money games among children and youth, leading to:

• Mental stress,
• Gambling tendencies,
• Illegal activities,
• Financial scams,
• Suicides and even murders.

However, the Act has also triggered economic disruption in industries worth billions. Several startups and IT jobs ended abruptly, causing unemployment. Many argue that instead of banning, the industry could have continued innovating in skill-based gaming under proper regulation.

COMPARATIVE LAW

UK Gambling Act, 2005

The UK regulates online and offline gambling through the Gambling Act 2005, which created the Gambling Commission. This body licenses operators, monitors compliance, and ensures consumer protection. Instead of banning, the UK follows a licensing and supervision model.

US Gambling Law

In the US, gambling laws vary by state. Some states allow online gambling under strict licensing rules, while others prohibit it entirely. This decentralized approach has created diverse regulatory regimes within the country.

CONCLUSION

The Promotion and Regulation of Online Gaming Act, 2025 bans real money games while legitimizing e-sports as a means of enhancing skills, mental ability, and competitiveness among youth.

The Act establishes a committee to oversee which games fall under the category of e-sports, while imposing strict penalties (Sections 5 & 7 of the Bhartiya Nagarik Suraksha Sanhita) to safeguard citizens from gambling, stress, and underage addiction.

However, the absolute ban on online money gaming has led to economic disruptions, unemployment, and loss of foreign investment. A regulatory model with licensing, consumer protection measures, and awareness campaigns may be a better alternative than an outright prohibition.

REFERENCES

1. Shubhi, Promotion and Regulation of Online Gaming Act 2025: Scope, Rules and Penalties for Violations, SCC Online (Aug. 24, 2025).
   Link
2. Aditya Kalra & Arpan Chaturvedi, India Faces First Legal Challenge Against Online Money Games Ban, Reuters (Aug. 28, 2025).
   Link
3. S. Muthu Kumar v. Union of India, PIL No. ___ (Sup. Ct. India, Aug. 17, 2021).
4. Aman Dewangan v. State of Chhattisgarh, (Chhattisgarh HC, Jul. 4, 2025) (Unreported).
   Link
5. Pauly Vadakkan v. State of Kerala, W.P.(C) No.26300 of 2020 (Ker. HC, Feb. 10, 2021) (Unreported).
   Link

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