India Supreme Court decisions overhaul gambling regulation and GST on betting

The Supreme Court of India delivered two landmark judgments that reshape the legal framework for gambling and tax. In State of Tamil Nadu v. Junglee Games India Ltd., the Court affirmed that state legislatures can prohibit betting on all games, including those of skill, when stakes are involved, interpreting Entry 34 of the State List to cover staking activities and upholding online‑gaming bans under public‑order and public‑health powers. In GST Intelligence Directorate v. Gameskraft Technologies Ltd., the Court upheld the constitutional validity of CGST provisions on actionable claims arising from betting, declaring online gaming platforms to be suppliers of such claims and therefore liable for GST. The ruling clarified that the creation and transfer of actionable claims constitute a supply, and applied the tax retrospectively, affecting revenue exceeding INR 1 lakh crore. These decisions are expected to have far‑reaching effects on contract law, property law, and the balance of state versus central regulatory authority in India.