Bengaluru, 30 Aug 

The Karnataka High Court sought the Union government’s response to a petition challenging the Promotion and Regulation of Online Gaming Act, 2025, which petitioners argue threatens to wipe out the livelihood of thousands of people overnight.

The matter was heard by Justice BM Shyam Prasad, who granted time to the Centre to file its reply while allowing 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 contended that although the Act had received Presidential assent, it had not yet been notified. He argued that immediate implementation would deal a severe blow to the industry.

"If this industry is shut down overnight, the consequences will be serious. The government should either withhold notification until we are heard, or at least provide one week’s notice so we can approach the court," counsel submitted.

Appearing for the Union government, Solicitor General Tushar Mehta said this was the first time a court would be scrutinising the competence of such legislation, given its cross-border implications. He added that once Parliament passes a law and it receives Presidential assent, notification is part of the constitutional process.

The court then adjourned the matter, directing the Union to place its response along with the petitioner’s submissions seeking interim relief.

The petitioners have challenged the Online Gaming Act on the grounds that it was enacted without consultation or deliberation, despite the government earlier promoting the online skill-gaming industry. They contended that the sudden shift risks crores of rupees in investments and threatens the livelihood of over two lakh employees in the sector.

The plea relies on Supreme Court precedent affirming that skill-based games involving stakes are a legitimate business under Article 19(1)(g) of the Constitution. The plea says the Act, therefore, violates fundamental rights under the Constitution.