As legal uncertainty continues to loom large over India’s rapidly growing real money gaming sector, the Supreme Court has become the focal point of several critical cases ranging from constitutional challenges to state-level bans, to the national tax (GST) regime for money gaming platforms, and ban of new formats like opinion trading apps.
Plea to Ban Betting Platforms
In May this year, the Supreme Court issued notice to the Centre in a plea seeking a complete ban or regulation of both online betting apps. The petition, filed by evangelist Dr. KA Paul, argued that such apps amount to gambling and pose severe societal risks. “Out of 900 million, 30 crore are being trapped illegally,” Paul told the Court, citing alleged suicides and exploitation by influencers and app promoters. The Bench of Justices Surya Kant and NK Singh stated that notices to all states would be issued “if needed,” signaling potential nationwide ramifications.
GST Showdown: Gameskraft Case Enters Final Phase
Simultaneously, the much-watched ₹21,000 crore GST demand case involving Bengaluru-based Gameskraft is now in its final hearing stage before the Supreme Court. On July 15, the bench comprising of Justice Pardiwala and Mahadevan said it would expect all parties to conclude the arguments by July 25, the date on which the judgement would be reserved. Central to the matter is whether online real money games involving skill should be taxed at 18% as services, or at 28% as actionable claims akin to gambling. The outcome of this case could significantly alter the financial viability of the entire sector. While amendments were done in 2023 to tax online money gaming at 28%, the revenue department argues that such amendment is only clarificatory in nature and taxes at 28% have to be paid from July 2017 at such rate.
Importantly, appeals filed by the states of Tamil Nadu and Karnataka, challenging respective High Court decisions that struck down their online money gaming ban laws, have now been tagged with the Gameskraft matter, setting the stage for a consolidated constitutional and tax-related adjudication. The bench said it may de-tag the Tamil Nadu and Karnataka matters if required at a later stage.
Opinion Trading Platforms Under Supreme Court Lens
On July 18, 2025, the Supreme Court ordered the transfer of all pending PILs and writ petitions concerning so-called “opinion trading” platforms like Probo, TradeX, and MPL Opinio from the High Courts of Bombay, Gujarat, and Chhattisgarh. A Bench of Justices JB Pardiwala and R. Mahadevan directed that all case records be transferred to the Supreme Court for consolidated hearing. These platforms, which let users wager money on real-world outcomes like elections and entertainment events, raise complex regulatory questions under India’s gambling and IT laws. Opinion trading platform Probo was recently raided by financial watchdog Enforcement Directorate.
SLPs Against Madras High Court’s Upholding TNOGA Regulations
Adding to the Supreme Court’s crowded gaming docket, two separate Special Leave Petitions have now been filed against the Madras High Court’s June 3, 2025 judgment upholding the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022 and its 2025 Regulations. While one appeal comes from the Esports Players Welfare Association, the other was filed by professional poker player Vikram Kumar (popularly known as Vikram Lungi). Both petitions argue that the law unfairly targets skill-based games and violates individual freedoms under the Constitution.
The Road Ahead
The Supreme Court’s upcoming rulings across these matters are expected to shape the future of India’s online money gaming industry. With issues ranging from Article 21 rights and consumer protection to state powers, GST classification, and regulatory overreach, the Court’s verdicts could serve as landmark precedents that define how India balances innovation with public interest in the digital age.
