What the Supreme Court decided on state betting laws
A bench of Justices J.B. Pardiwala and R. Mahadevan allowed the appeals of Tamil Nadu and Karnataka and set aside the High Court judgments against them. It declared the provisions in question within the states' power: Part II of Tamil Nadu's 2021 amendment, the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Gaming Act, and the Karnataka Police (Amendment) Act, 2021.
The Court read entry 34 of the State List, "Betting and gambling", to cover betting on online games. Once money is staked on a game, it said, it matters little whether the game itself turns on skill or on chance.
GST upheld the same day
In a second judgment delivered the same day, 2026 INSC 595, the Court held that GST on actionable claims arising from betting and gambling is constitutionally valid, and that online gaming and fantasy sports with pooled stakes are taxable supplies. GST on betting, casinos, gambling and online money gaming has stood at 40 per cent since 22 September 2025.
Where the central Act stands
Both rulings concern state laws and GST. The central Promotion and Regulation of Online Gaming Act, 2025, in force since 1 May 2026, bans online money games across India; the challenges to it are pending separately before the Supreme Court as Transferred Case (Civil) No. 133 of 2025.