Gaming companies flag mass layoffs as SC pushes hearing to November

On Tuesday, the Supreme Court heard a batch of petitions challenging the Promotion and Regulation of Online Gaming Act, 2025, a law that crippled the real money gaming industry. The law bans all forms of games both skill and chance if played for stakes.

A bench comprising Justices J.B. Pardiwala and K.V. Vishwanathan heard the petitions filed by gaming companies, including Head Digital Works, the parent company of real-money gaming platform A23, Clubboom 11 Sports and Entertainment Pvt. Ltd, Bagheera Carrom (OPC) Pvt. Ltd. and others. The apex court’s move follows weeks of legal uncertainty for online gaming operators, who argue that the new law is crippling the sector.

Aryama Sundaram, senior counsel appearing on behalf of Head Digital Works, made a fervent request that the matters be listed for final hearing at the earliest as the business of the petitioners has come to a standstill and many employees have been laid off. He suggested that the matter be taken up for final disposal after completion of pleadings rather than hearing on interim relief, noting that arguments on interim relief would inevitably cover the same ground.

Justice Pardiwala queried whether the issues in the Tamil Nadu and Karnataka government’s appeals in the Gameskraft batch of cases would overlap with this matter and if that would have any bearing here. The counsels averred that to the extent of legislative competence, it would have a bearing, but there are other grounds of challenge to the legislation. Justice Pardiwala verbally remarked that it would be better if the matter is mentioned before Hon’ble the Chief Justice of India and that it would be desirable for the same combination (Justices Pardiwala and Mahadevan) that heard the Gameskraft batch also hear this matter.

The Centre had earlier sought the transfer of all related matters to the Supreme Court, citing the need for uniform adjudication. On Friday, the bench allowed this request, consolidating petitions that had been pending before the Delhi, Karnataka, and Madhya Pradesh High Courts.

The judges had directed that records from all three courts be transferred digitally to the Supreme Court within one week. Importantly, Justice Pardiwala had clarified that any fresh petitions filed in other courts challenging the Online Gaming Act must also be transferred directly to the apex court.

“If there are any challenges to the validity of the Promotion and Regulation of Online Gaming Act, 2025, the same must not be entertained and must be transferred to the Supreme Court,” the bench stated.

Solicitor General Tushar Mehta, representing the Union government, argued in favor of consolidation, noting that the same bench had previously considered similar petitions. “It would be much easier to conclude the matter if they are heard together,” he submitted.

Sundaram, appearing for the industry, also supported the move, saying that bringing all cases under one roof and relying on digital transfers would make proceedings faster and more efficient.

Ultimately, the court ordered that pleadings in the batch of cases be completed and the matter be listed for final hearing after the Diwali vacation. The cases will be taken up on November 4, 2025, top of the board.

The petitions highlight the growing friction between India’s online gaming industry and regulatory authorities. Head Digital Works, which runs A23, initially approached the Karnataka High Court, while Bagheera Carrom (OPC) Pvt. Ltd., a member of the E-Gaming Federation (EGF), moved the Delhi High Court. In Madhya Pradesh, Clubboom 11 Sports and Entertainment Pvt. Ltd., associated with the Federation of Indian Fantasy Sports (FIFS), filed its own challenge.

Read More:Gaming companies flag mass layoffs as SC pushes hearing to November