New Delhi, 26 October 2026: The Supreme Court of India has dismissed review petitions filed by online gaming companies challenging its May 2026 judgment upholding laws enacted by Tamil Nadu and Karnataka to prohibit online games involving monetary or other stakes.
A Bench comprising Justices J.B. Pardiwala and R. Mahadevan found no merit in the review petitions and dismissed them. The petitions challenged the Court's earlier ruling concerning the constitutional validity of state laws regulating and prohibiting online betting and wagering, including activities involving games of skill.
Background of the Dispute
The legal dispute arose from amendments enacted by Tamil Nadu and Karnataka in 2021 to restrict online games involving betting or wagering. The laws faced challenges from gaming companies and industry associations, which argued that games of skill should be distinguished from games of chance and that the states could not impose the restrictions in question.
The Madras High Court and the Karnataka High Court had previously struck down relevant provisions of the respective state laws. The state governments challenged those decisions before the Supreme Court.
Supreme Court's Earlier Ruling
In its judgment dated 27 May 2026, the Supreme Court upheld the constitutional validity of the challenged state laws. The Court held that although games of skill may receive constitutional protection in appropriate circumstances, betting or wagering on such games does not automatically enjoy the same protection.
The Court also recognised the legislative competence of states to regulate or prohibit betting and gambling under Entry 34 of List II of the Seventh Schedule to the Constitution of India. It rejected the argument that online gaming companies possess a fundamental right under Article 19(1)(g) to conduct business involving betting and gambling.
Review Petitions Dismissed
The gaming companies subsequently approached the Supreme Court through review petitions seeking reconsideration of the May judgment. On 26 October 2026, the Court dismissed the petitions after finding no merit in them.
The dismissal leaves the Court's earlier ruling undisturbed. It marks a further development in the legal dispute over the regulation of online games involving stakes and the extent of state legislative powers in this area.
Legal Significance
The development is significant for constitutional law, gaming regulation and the interpretation of the distinction between games of skill and betting or wagering. It reinforces the legal position adopted in the May judgment that the presence of skill in a game does not, by itself, place wagering on that game beyond state regulation.
However, the ruling should not be interpreted as a prohibition on every form of online gaming. Its scope must be understood in the context of the challenged state laws, games involving stakes, and the applicable statutory and regulatory framework.
Source: The Economic Times, 26 October 2026; Supreme Court of India judgment dated 27 May 2026.