India’s online gaming industry is looking to the Supreme Court for clarity as the Promotion and Regulation of Online Gaming Act (PROGA), 2025 continues to reshape the sector. The 21 January hearing of petitions challenging the law’s constitutional validity is being closely watched by gaming companies, with the proceedings expected to bring possible relief or regulatory direction for an industry affected by a nationwide ban on real-money online gaming.
Hearing on PROGA
The Supreme Court will take up the matter before a three-judge bench led by Chief Justice of India Surya Kant. The hearing will cover multiple petitions filed by online gaming operators and industry bodies, along with a public interest litigation filed by activist K.A. Paul. The petitions challenge key provisions of the PROGA, which bans all forms of real-money online gaming, including games of skill and games of chance.
What PROGA seeks to regulate
The PROGA received Presidential assent on 22 August 2025. The law states that its objectives are to promote innovation in esports and online social gaming while curbing harmful money-based games. However, the Act imposes a blanket ban on all forms of real-money gaming, without distinguishing between skill-based and chance-based games.
“For too long, the spotlight was misplaced, RMG was never gaming; it was gambling.”
– Satyajit Chakraborty, Game Developer at Flying Robot Studios
Following Presidential assent, several real-money gaming platforms, including A23, suspended contests involving deposits. Operators have now approached the Supreme Court seeking a temporary stay on enforcement and the striking down of sections that prohibit online money games. They argue that these provisions exceed the legislative powers of the central government and encroach upon state jurisdiction.
Satyajit Chakraborty, Game Developer at Flying Robot Studios, believes the PROGA rightly prioritises public welfare, responsible gaming, and the growth of esports and social games.
“Yet, instead of an outright ban, a phased regulatory framework with strong consumer protections could have allowed companies time to diversify and adapt. That said, I believe this is a step in the right direction for the Indian video game industry. For too long, the spotlight was misplaced, RMG was never gaming; it was gambling. Gambling is easy, dirty money, and investors should have recognised the fragility of such a model. True, sustainable growth comes from creative and technical innovation, not from vices that can be outlawed overnight,” Chakraborty earlier told SiGMA News.
Regulatory impacts across sector
The impact of PROGA has extended across the industry. Flutter Entertainment has begun reshaping its India strategy following the shutdown of Junglee Games’ real-money operations. The company is redeploying staff, exploring cash-free gaming models within India, and evaluating international markets where regulation permits real-money play. Flutter recorded an impairment charge of $556 million linked to Junglee’s closure, contributing to a net loss of $789 million in the third quarter of 2025.
“I am extremely disappointed with the sudden changes to the regulatory landscape in India.”
– Peter Jackson, Chief Executive Officer at Flutter
Flutter’s Chief Executive Officer, Peter Jackson, highlighted the wider risks posed by the new regulatory regime. He stated that the ban could drive players towards unregulated platforms, which lack consumer protection measures and do not contribute to the local economy.
Jackson said, “I am extremely disappointed with the sudden changes to the regulatory landscape in India. Over the last four years Junglee has invested significantly in its local market, building a workforce of over 1,100 employees to deliver innovative skill-based gaming products to Indian customers.”
Nazara Technologies, India’s only listed gaming company, reported a consolidated net loss of ₹29.35 crore ($2.94 million) for the second quarter of financial year 2025-26. The loss followed an impairment of ₹914.7 crore ($91.47 million) on its investment in Moonshine Technologies, which was affected by the ban on real-money gaming.
Other leading operators, including Dream11, Mobile Premier League, Gameskraft, Zupee and Games24x7, suspended money-based games. Opinion trading platforms such as Probo and MPL Opinio also shut down their services. Dream Sports, which derives over 90 percent of its revenue from Dream11, is now relying on other businesses such as FanCode, DreamSetGo and its game development studio.
Government’s stance on the law
The Union government has defended PROGA as a necessary step to address risks arising from an unregulated online money-gaming ecosystem. In its affidavit, the government cited concerns over public order, financial integrity and the protection of vulnerable users. It highlighted issues such as foreign-controlled platforms, dummy directors, opaque algorithms and manipulative game design.
The government maintains that the Parliament has full legislative competence to regulate online gaming and that rapid growth without a statutory framework has led to social and economic harm. It has argued that the ban is justified in the interest of national welfare.
Offshore shift raises new concerns
Data from a survey by public policy think tank CUTS International suggests that the ban may have had unintended effects. The study found that the use of offshore betting platforms increased from about 68.3 percent to 82 percent after the prohibition came into effect. Many users reported higher spending and longer engagement on foreign websites rather than a reduction in gambling activity.
“Extremely difficult to prosecute offshore operators under Indian law.”
– Divya Sharma, Corporate Lawyer
The migration to offshore platforms poses major legal and enforcement challenges, corporate lawyer Divya Sharma explained to SiGMA News.
Sharma said that because offshore sites operate outside Indian law, regulators struggle to enforce Indian Know-Your-Customer (KYC) and Anti-Money Laundering (AML) requirements. “The offshore platforms remain accessible because they evade Indian KYC/AML norms and use VPNs or mirror domains to stay online,” she said. These tactics make it “extremely difficult to prosecute offshore operators under Indian law.”
The survey covered 1,000 former real-money gaming users in the Delhi NCR region and tracked behaviour before and after the ban was implemented on 1 October 2025. The findings point to a significant shift towards unregulated offshore platforms in the absence of licensed domestic alternatives.
With the 21 January hearing, the Supreme Court is expected to examine the government’s regulatory objectives alongside the economic and operational impact of the law on the online gaming industry.
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