States Can Ban Online Betting on Skill Games: Supreme Court Says Money Gaming Falls Within Betting, Gambling and Public Order Powers
Case Name: State of Tamil Nadu & Ors. v. Junglee Games India Pvt. Ltd. & Ors. with connected matters
Citation: 2026 INSC 594
Date of Judgment/Order: May 27, 2026
Bench: Justice J.B. Pardiwala and Justice R. Mahadevan
Held: The Supreme Court held that State Legislatures are competent to regulate and prohibit online betting and wagering, even when the underlying game involves skill, because once money is risked on an uncertain result, the activity falls within the field of “betting and gambling” under Entry 34 of List II. The Court rejected the view that “betting” must always be read only as betting on games of chance and held that betting on games of skill is not constitutionally immune merely because the game itself involves skill. The Court further held that online money gaming creates serious risks of addiction, financial ruin, suicides, public health concerns and disturbance of public tranquillity, thereby also supporting State competence under entries such as public order and public health.
Summary: The case arose from challenges to the Tamil Nadu and Karnataka amendments restricting online money gaming, including online rummy, poker and other games played with stakes. The Madras High Court and Karnataka High Court had struck down or read down the State laws on the ground that games of skill could not be treated as gambling and that betting and gambling under Entry 34 of List II did not cover skill-based games played for stakes. The Supreme Court reversed this approach, holding that the High Courts had given an unduly narrow meaning to Entry 34. The Court reasoned that the Constitution permits States to address modern forms of betting and gambling in cyberspace, where mobile phones and online platforms can function as virtual gambling spaces. It held that online money gaming is materially different in scale, accessibility, addiction potential and social impact, and that the State need not remain powerless merely because the game has an element of skill. The Court also rejected the argument that the impugned laws were manifestly arbitrary or disproportionate, noting that the Tamil Nadu legislation was supported by material including the Justice Chandru Committee report and the legislative objective of preventing addiction, debt and suicides.
Decision: The Supreme Court allowed the appeals filed by the State of Tamil Nadu and the State of Karnataka, set aside the judgments of the Madras High Court and the Karnataka High Court, and declared Part II of the Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021, Sections 2(i), 2(l)(iv) and the Schedule to the Tamil Nadu Online Gambling Act 2022/23, and Sections 2, 3, 6, 8 and 9 of the Karnataka Police (Amendment) Act, 2021, to be intra vires the Constitution. The connected appeal was also disposed of in the same terms, with no order as to costs.