SC may exempt online sports events from gaming ban; next hearing on Nov 26

The Supreme Court has orally indicated that regular online competitions and tournaments could be kept out of the scope of the Promotion and Regulation of Online Gaming Act, 2025

In a significant observation that could have major implications for India’s booming esports and online gaming sector, the Supreme Court on Tuesday (November 4, 2025) indicated that skill-based online tournaments and competitions may not come under the ambit of the Promotion and Regulation of Online Gaming Act, 2025.

 

The Act, which bans real money games, related banking transactions, and advertisements, has drawn multiple legal challenges from gaming platforms and professionals. During a hearing of a plea filed by an online chess player, a Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan remarked that tournaments focused on skill, rather than betting, might be “completely excluded” from the law’s purview. The Court scheduled the next detailed hearing for November 26, 2025. 

 

What’s the latest update

The Supreme Court’s oral remarks came while hearing a petition filed by a professional chess player who claimed that his livelihood depended on participating in online tournaments. When questioned about whether such tournaments involved betting, the counsel clarified that players paid a participation fee and competed for prizes. Justice Pardiwala observed that the government had no objection to tournaments or competitions of skill.

 

The Court also tagged this plea with a batch of petitions filed by online gaming platforms challenging the 2025 Act, which they argue has forced widespread shutdowns and layoffs. The Union government has been directed to file a detailed counter-affidavit before the next hearing on November 26.

Why this news is important

The Supreme Court’s indication that online tournaments may be exempt could bring relief to thousands of esports players, fantasy sports professionals, and skill-based gaming platforms.

 

Since the enforcement of the 2025 Act, several companies have suspended operations, citing severe revenue losses and employee layoffs. Industry representatives argue that the law, while intended to target gambling, inadvertently affects legitimate competitive platforms and professional players.

 

The Court’s clarification could help establish a legal distinction between games of skill and games of chance — a long-debated issue central to India’s online gaming regulations.

Who filed the PIL

The Centre for Accountability and Systemic Change (CASC) filed a Public Interest Litigation (PIL) urging the government to clamp down on online gambling and betting apps that allegedly operate under the guise of social or esports games.

 

The PIL, filed on October 13, 2025, by advocates Virag Gupta and Rupali Panwar, lists six respondents, including four Union ministries — Electronics and IT, Information and Broadcasting, Finance, and Youth Affairs and Sports — as well as Apple Inc. and Google India Pvt. Ltd. The CASC is represented by former Uttar Pradesh DGP Vikram Singh and advocate Shourya Tiwari. The plea will be heard by a Bench led by Chief Justice B.R. Gavai and Justice K. Vinod Chandran.

Why the PIL was filed

CASC’s petition argues that the unchecked rise of online gambling platforms has caused widespread economic and social harm across India. The petition cites data indicating that over 65 crore Indians participate in online money games, generating a business exceeding ₹1.8 lakh crore annually.

 

The PIL asserts that half of India’s population is exposed to gambling-like activities disguised as social or esports games, leading to addiction, financial distress, and even security concerns. It calls for a “harmonious interpretation” of central and state laws to prevent betting and gambling platforms from exploiting loopholes. The petitioners emphasise that the 2025 Act was passed to protect citizens and curb these growing threats.

What is the Online Gaming Ban Act, 2025

The Promotion and Regulation of Online Gaming Act, 2025, was enacted to regulate and restrict online gaming activities involving real money. The law prohibits real money games, associated banking services, and advertisements promoting such platforms.

 

The Centre has defended the Act as essential to address what it terms a “serious social evil,” claiming that 45 crore users have collectively lost over ₹20,000 crore through online gambling. It argues that unregulated platforms have exploited loopholes and caused severe harm to individuals and families. However, gaming companies contend that the Act unfairly penalises legitimate skill-based games and esports competitions.

What’s next

The Supreme Court has ordered the Union government to file a comprehensive counter-affidavit addressing the concerns raised by both professional players and gaming platforms. The matter will be taken up for detailed hearing on November 26, 2025.

 

While it was earlier mentioned in the Act that esports would not fall under the ban, players and organisations holding online gaming tournaments are worried that the ban might expand to include their model as well. This is why the hearing on November 26 becomes even more important — to paint a clear picture of how the Act works and what esports players in India should expect in the coming days.