The Supreme Court is expected to consider a plea from the central government seeking the transfer of all petitions challenging the newly enacted Promotion and Regulation of Online Gaming Act, 2025, from various High Courts to the Supreme Court itself.

The online gaming industry is facing scrutiny following the enactment of the Promotion and Regulation of Online Gaming (PROG) Act, 2025, which has led to legal challenges across the country. The central government's move to consolidate these cases in the Supreme Court indicates the significance and the potential wide-ranging impact of this legislation.

Several petitions have already been filed in different High Courts challenging the constitutional validity of the PROG Act. These petitions argue that the Act infringes upon fundamental rights guaranteed under the Constitution, including the right to practice any trade or business. Petitioners contend that online games of skill, even when played for stakes, are legitimate business activities protected under Article 19(1)(g) of the Constitution.

A key point of contention is the Act's definition of "online money game," which petitioners argue blurs the distinction between games of skill and games of chance. They maintain that this distinction is well-recognized under the Constitution, and the new law disregards established legal precedents.

The industry has also raised concerns about the lack of consultation with stakeholders before the enactment of the law. They argue that the abrupt imposition of a ban on the industry is arbitrary and threatens the livelihoods of over two lakh employees. The industry contributes a significant amount to the government in terms of taxes, with estimates suggesting an annual contribution of ₹6,500–₹6,800 crore in direct taxes and nearly ₹75,000 crore in indirect taxes.

Recently, the Karnataka High Court heard a petition filed by Head Digital Works, the parent company of the online gaming platform A23, challenging the PROG Act. The court has directed the Union government to file its response by September 8, 2025, and has allowed the petitioners to submit detailed arguments in support of their plea for an interim stay on the Act's operation. Senior counsel representing the petitioners have argued that the implementation of the new Act would have a serious impact on employment and the industry. They have requested the court to ensure that the Act is not notified until the matter is heard, or to provide a week's notice before notifying the Act.

The Solicitor General, representing the Union government, has stated that notifying the law is a constitutional process once the President has given assent and that courts should not interfere. He also argued that the legislation has trans-border implications, which is a matter of concern for the parliament.

The Supreme Court's decision to take up the Centre's plea will be crucial in determining the future of the online gaming industry in India. The consolidation of all petitions related to the PROG Act under the Supreme Court would ensure a comprehensive and consistent adjudication of the legal challenges, considering the significant economic and constitutional questions involved.