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SC Seeks Centre’s Response on Plea to Ban Online Gambling, Betting Apps Masquerading as E-Sports

Think tank CASC urges nationwide crackdown on unregulated gaming platforms, citing tax evasion, addiction, and national security risks.

SC Seeks Centre’s Response on Plea to Ban Online Gambling File photo
Summary
  • The Supreme Court has asked the Centre to respond to a PIL seeking a ban on gambling and betting apps posing as social or e-sports games.

  • The plea, filed by CASC, also calls for RBI and NPCI to block monetary transactions with unregistered gaming platforms.

  • Alleging unpaid taxes of over ₹2 lakh crore and widespread harm, the petition urges action under Section 69A of the IT Act and data protection for minors.

In a plea for directions to outlaw online gambling and betting sites that purport to be social media and e-sports games, the Supreme Court has turned to the Centre for support.

Justices JB Pardiwala and KV Viswanathan's bench requested that the petitioner's attorney deliver a copy of the PIL to the central government's attorney.

"We request VC Bharathi to look into the petition and assist us on the next date of hearing. List after two weeks," the bench said in an order passed on Friday.

The Centre for Accountability and Systemic Change (CASC), a research tank, filed a request with the top court asking for orders to ban online gambling and betting platforms that purport to be social and e-sports games.

In the request, the RBI, NPCI, and UPI platforms have also been asked to prohibit any financial transactions involving unlicensed gambling software.

With offshore gambling enterprises estimated to owe more than Rs 2 lakh crore in unpaid taxes, it has pursued tax recovery and investigation through Interpol, CBI, and ED.

To prevent online gambling and betting games that operate under the pretence of social and e-sports games, the plea has asked the Union ministries of Electronics and Information Technology, Information and Broadcasting, Finance, and Youth Affairs and Sports to interpret the provisions of the Promotion and Regulation of Online Gaming Act, 2025, harmoniously.

The Act forbids detrimental behaviours associated with online money games and establishes a thorough framework to encourage safe digital enjoyment.

Six respondents are named in the case, including the two top app store operators, Apple Inc. and Google India Pvt. Ltd., as well as four Union ministries.

"Betting and gambling are regarded as unlawful activities in the majority of the states in India. Several cases are contested in high courts wherein affidavits were filed by the government and gaming platforms. Upon analysing the same, it is reported that more than 65 crore persons are playing such games, creating an annual business of more than Rs 1.8 lakh crores for these platforms in India," the PIL claimed.

"Around half of the Indian population is involved in playing online games, which are adversely impacting society, economy and national security. The devastating impact of online betting and gambling are endorsed in the objectives of the newly passed Promotion and Regulation of Online Gaming Act, 2025. As per the IT Minister's speech in Parliament, the Bill was introduced to ensure the welfare of society and to prevent the serious evil that is creeping into society," the PIL said.

According to the appeal, half of India's population has been impacted by the unbridled growth of online gaming, which has resulted in financial ruin, mental health problems, and even suicides.  The petition has called for a statewide ban on online betting and gambling sites that function as social games or esports.

It has requested banning orders under Section 69A of the IT Act against all illegal betting websites and applications in one of the pleas.

The PIL has also asked for guidance on how to safeguard the information that online gaming businesses already have about children.

According to the PIL, famous cricket players and movie personalities are supporting illegal games that cause addiction, mental health issues, cyber fraud, and suicides.

The fraud and cheating algorithms are such that it's impossible to tell who is playing, the PIL said, alleging that money laundering activities may be taking place in the garb of online gaming.

With PTI inputs.

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