Real-money game providers in India are presently in limbo as the Supreme Court has deferred the hearing on the blanket online gambling ban till January 21, 2026. Industry stakeholders had requested a temporary stay on the order, stating that several sections of the Promotion and Regulation of Online Gaming Act exceed the Union government’s legislative competence. Operators explain that their businesses have come to a complete standstill and hundreds of employees have lost their jobs since the ban took effect on August 22.
Supreme Court of India Defers Hearing on the Online Gambling Act Until January 21, 2026: Quick Summary
- The Chief Justice of India (CJI), Surya Kant, directed a three-judge panel to hear the batch of pleas on January 21, 2026. He noted that it is a general policy to assign matters related to legislative competence to a three-judge bench.
- The CJI heard a petition filed by Head Digital Works (HDW), seeking a temporary stay on India’s Promotion and Regulation of Online Gaming Act (PROGA). It challenges the Union government’s legislative competence in enforcing the law.
- India’s Ministry of Information and Technology had requested that the Supreme Court hear all petitions challenging PROGA. Lawmakers believe that a response from the highest court will prevent legal uncertainty arising from inconsistent findings.
Chief Justice of India Directs Petition Challenging Gambling Ban to a Three-Judge Bench
A Bench comprising CJI Surya Kant and Justice Joymalya Bagchi has deferred the hearing on several litigations against India’s online gambling ban to January 21, 2026. Hyderabad-based Head Digital Works, a prominent skill-based gaming service provider, filed an early listing application before the Bench on Thursday, December 11.
The company warned that the blanket ban on remote gambling operations has paralysed the INR 20,000 crore (roughly €1.8 billion) industry and rendered hundreds unemployed. Senior advocates Aryama Sundaram and Arvind Datar, appearing on behalf of HDW, informed the top court that the matter had been reassigned from the Bench of Justices JB Pardiwala and KV Viswanathan.
Emphasising the importance of an urgent hearing and requesting a temporary stay on PROGA, Sundaram said:
The matter has been removed from the board, and we plead for an early hearing, as the industry has been shut down, and people are unemployed.
The Bench noted that the petition alleges the vires of a statute, specifically legislative competence. It directed that the matter be placed before a three-judge bench as part of the normal procedure. The composition of the bench will be finalised soon. When the counsel pleaded for an early hearing owing to the industry’s challenges, the Bench responded:
Everything is shut down… We are listing in January. That is what I am promising.
HDW’s petition states that since PROGA took effect, banks, payment gateways and other financial systems have withdrawn their services, effectively crippling the sector. The company has not generated any revenue in nearly three months, while its operational expenses have exceeded INR 100 crore (approximately €1.02 million). Its workforce has shrunk by one-third, from 606 to 178 employees, and the foreign investor Clairvest has written off its INR 7,600 crore (roughly €77.57 million) investment.
Petitioners Challenge the Legality of the Blanket Prohibition
Since PROGA’s enforcement in August, several petitions challenging the ban have been filed across High Courts in Delhi, Madhya Pradesh and Karnataka. This prompted India’s Ministry of Electronics and Information Technology to urge the Supreme Court to consolidate the hearing in a bid to avoid legal uncertainty arising from inconsistent findings.
Industry representatives have questioned whether the Parliament has the legislative competence to enforce a nationwide ban on real-money games. The petitioners claim that by classifying all stake-based games as “betting and gambling”, PROGA violates Entry 34 of List II – State List of the Indian Constitution, which grants states the freedom to make laws on betting and gambling.
They also highlight that a blanket ban undermines long-standing jurisprudence that safeguards games of skill, such as rummy and fantasy sports, under Article 19(1)(g), which guarantees every citizen the right to practise any profession or to carry on any occupation, trade or business.
Solicitor General Tushar Mehta, appearing on behalf of the Union government, strongly defended PROGA as a public welfare mechanism to prevent the dangers of gambling harm. The government cited instances of addiction and suicide among young players, money laundering, terror financing, and tax evasion to justify the blanket prohibition.
The Directorate General of Goods and Services Tax Intelligence (DGGI) recently cracked down on offshore real-money gaming firms for tax evasion. Official data claims that over INR 5,700 crore (approximately €537 million) was syphoned out of the country between 2023 and 2024 via such platforms.
Notified on August 22, The Promotion and Regulation of Online Gaming Act, 2025, prohibits the offering, servicing, facilitation or advertising of online games played for real-money stakes or virtual rewards, regardless of whether they are games of skill or chance. Penalties include imprisonment for up to three years and fines of up to INR 2 crore (roughly €188,661).