On May 27, 2026, the Supreme Court of India delivered significant rulings impacting the online gaming sector. The Court upheld the constitutional validity of a 28% Goods and Services Tax (GST) on online gaming companies, clarifying that the tax applies to the total value of stakes rather than just the revenues retained by platforms. This decision arose from appeals concerning the applicability of GST to online gaming, following amendments by the GST Council in August 2023. Additionally, the Court affirmed the validity of State laws prohibiting real-money gaming, emphasizing that betting and gambling activities fall outside legitimate commerce. The rulings come amid the challenges posed by the Promotion and Regulation of Online Gaming Act, 2025, which banned all forms of real-money gaming due to national security concerns. Experts predict that the GST rulings may not lead to significant recovery of tax demands, as many gaming companies have relocated operations or shifted focus to less regulated sectors. The implications of the Court's decisions could also affect ongoing challenges to the 2025 law, as the government must justify its legislative competence in this context.