MP High Court issues notice to Centre on plea challenging new online gaming law

MP High Court

The Madhya Pradesh High Court on September 3 issued a notice to the Centre over a plea challenging the new online gaming law that imposes a blanket ban on real-money games.

A division bench of Chief Justice Sanjeev Sachdeva and justice Vinay Saraf has directed the government to file its reply to the petition within four weeks and allowed petitioners to file any rejoinders before the next hearing date on October 28, 2025.

This marks the third challenge to the online gaming legislation, which was passed by Parliament on August 22. Head Digital Works, which operates the online rummy platform A23 Rummy, had approached the Karnataka High Court on April 28, while the online carrom platform Bagheera Carrom moved the Delhi High Court earlier this week.

The petition in the Madhya Pradesh High Court was filed by Clubboom11 Sports & Entertainment, which operates the online fantasy sports platform Boom11. As per the petition, the company is a member of the Federation of Indian Fantasy Sports (FIFS), an industry body for fantasy sports, with Dream11 as its founding member.

Senior Advocate Gopal Jain, representing the petitioner, argued that fantasy sports is a category that has been recognised as legitimate activity by the Supreme Court and several high courts and therefore, the best way forward for the government is to regulate the sector rather than prohibit it.

Jain further submitted that the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 also recognised the category of Permissible Online Games and hence, the prohibition is not a reasonable measure.

The senior advocate also cited the Statement of Objects and Reasons of the Promotion and Regulation of Online Gaming Act, 2025, which notes that the government intended to create a separate sub-category for permissible online games and provide an appropriate legal framework. Hence, an activity which is capable of being regulated should not be banned or prohibited, he submitted.

In its petition, Clubboom11 Sports & Entertainment has requested the high court to declare the legislation as arbitrary, illegal, and in violation of Articles 14, 19, and 21 of the Constitution of India to the extent that it prohibits, criminalises and prescribes penal provisions against “online money gaming,” including skill-based games like fantasy sports.

It also sought the provisions related to the prohibition of online money games be declared as illegal, unconstitutional, and in violation of Articles 14, 19 (1)(g), and 21 of the Constitution of India.

Additionally, the petitioner has asked the court to direct the government to begin consultations with stakeholders and create an appropriate and reasonable regulatory framework for legitimate online skill gaming businesses in the country while also implementing the 2023 gaming-related amendments that were introduced in the IT Act, 2021.

Solicitor General Tushar Mehta submitted that the government is considering moving a transfer petition for all the matters to be heard together in either one of the High Courts or the Supreme Court directly, since similar challenges are already pending in the Karnataka and Delhi High Courts. He further stated that the law does not ban all forms of online games but only those involving monetary returns.

The new law prohibits online money games, where a user makes a deposit, directly or indirectly, with the expectation of earning winnings on that deposit.

After the Parliament gave its nod to the bill on August 22, real-money gaming companies suspended contests and games involving money on their platforms, though they continue to offer free-to-play options.

Several companies, including Dream11 parent Dream Sports, Gameskraft, Mobile Premier League (MPL), Zupee, and Pokerbaazi parent firm Moonshine Technology, have decided not to challenge the law.