In a significant ruling on the regulation of online gaming and betting, the Supreme Court has upheld legislative measures enacted by Tamil Nadu and Karnataka to curb online betting and wagering activities. The Court set aside earlier judgments of the Madras and Karnataka High Courts that had struck down key provisions of the state laws.
The judgment was delivered by a Bench comprising Justice J.B. Pardiwala and Justice R. Mahadevan on May 27, 2026.
Background of the Dispute
The litigation arose after Tamil Nadu and Karnataka amended their gaming laws to address online betting and wagering through digital platforms. The amendments brought online gaming involving stakes within the scope of state gaming laws and removed certain protections previously available to games of skill played for money.
Gaming companies, including Junglee Games and industry bodies, challenged these laws before the respective High Courts. The Madras High Court and Karnataka High Court had ruled in favour of the gaming companies, holding that games predominantly involving skill could not be treated as gambling merely because money was involved.
The states then approached the Supreme Court.
Court’s Examination of State Powers
A central issue before the Court was whether the constitutional entry relating to “betting and gambling” empowered states to regulate betting and wagering connected with games that may involve skill.
The states argued that online betting, regardless of whether the underlying game involved skill or chance, created social harms including addiction, financial distress and public-order concerns. They contended that state legislatures possessed authority to regulate or prohibit such activities.
The gaming companies, on the other hand, maintained that games of skill enjoy constitutional protection as legitimate business activities and cannot automatically be brought within the category of gambling.
Supreme Court’s Observations
The Bench disagreed with the interpretation adopted by the High Courts that the constitutional phrase “betting and gambling” must be read narrowly.
The Court held that state legislatures are competent to regulate betting and wagering activities, including those conducted through online platforms. It also found that the challenged laws were not manifestly arbitrary and did not suffer from constitutional infirmities.
Addressing the impact of online money gaming, the Court observed that such activities have wider societal consequences.
The Bench noted that online money gaming had implications relating to addiction, financial losses and reported suicides, and that these concerns could legitimately be considered by state legislatures while framing regulatory measures.
The Court further held that public order and public health considerations could also support legislative intervention in this area.
Decision
Allowing the appeals filed by the States of Tamil Nadu and Karnataka, the Supreme Court set aside the judgments of the Madras High Court and Karnataka High Court.
The Bench declared that:
“The appeals preferred by the State of Tamil Nadu and the appeals preferred by the State of Karnataka stand allowed.”
As a consequence, the Court upheld Part II of the Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021, provisions of the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Gaming Act, 2022/2023 that had been struck down, and Sections 2, 3, 6, 8 and 9 of the Karnataka Police (Amendment) Act, 2021.
The Court declared these provisions constitutionally valid and disposed of the connected appeals without any order as to costs.
Case Details:
Case Title: State of Tamil Nadu & Ors. v. Junglee Games India Pvt. Ltd. & Ors. (Connected Matters)
Case Number: Civil Appeal Nos. 6124–6131 of 2023 and connected matters
Judge: Justice J.B. Pardiwala and Justice R. Mahadevan
Decision Date: May 27, 2026
