SC moves online gaming sector case to three-judge bench

The Supreme Court has indicated that the challenge to the Promotion and Regulation of Online Gaming Act 2025 will now move to a three-judge bench and is likely to be heard only in January 2026. The direction came even as petitioners urged the court to advance the hearing, warning that the online skill gaming sector is facing an unprecedented paralysis despite the law not yet being notified.

A bench led by the Chief Justice heard an early listing plea filed by Head Digital Works which operates A23. The company said the matter unexpectedly dropped from the docket of the bench that had been hearing related appeals on state gaming bans. Counsel explained that the removal had left the industry exposed to financial and operational disruption and argued that the constitutional validity of PROGA required urgent judicial scrutiny.

The court noted that cases questioning the validity of a statute, especially those involving legislative competence, are generally placed before a three-judge bench. It signalled that the entire group of PROGA related matters will be listed once the new bench is formed early next year. When counsel pressed for an earlier date citing the collapse of operations across the sector the bench maintained that the hearing would take place only in January.

Petitioners have said that banks and intermediaries began withdrawing services within days of PROGA’s publication in August. They described blocked payment channels frozen settlements and suspended communication systems that together triggered sharp losses and workforce reductions. Investors have also recorded write offs citing regulatory uncertainty.

The government has defended PROGA as a needed check on an unregulated ecosystem that it says exposes users to financial and social risks. It has maintained that Parliament has full authority to legislate for the sector.

PROGA was introduced in 2025 to create a national framework for online money gaming. It laid out rules for registration compliance and penalties. The law was passed after months of debate and was published in August 2025 though it has not yet been brought into force.

With the matter now moving to a larger bench the future of the industry will depend on a constitutional ruling that will determine whether the Union the states or both can regulate online gaming.