SC seeks Centre's assistance on PIL seeking nationwide ban on online gambling

New Delhi, Oct 22 (PTI) The Supreme Court has sought the Centre's assistance on a plea seeking directions to prohibit online gambling and betting platforms that allegedly operate under the guise of social and e-sports games.

A bench of justices JB Pardiwala and KV Viswanathan asked the counsel appearing for the petitioner to serve a copy of the PIL to the counsel for the central government.

"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 top court was hearing a plea filed by think tank Centre for Accountability and Systemic Change (CASC) seeking directions to the Centre to prohibit online gambling and betting platforms that allegedly operate under the guise of social and e-sports games.

The plea has also sought directions to the RBI, NPCI, and UPI platforms to disallow any monetary transactions involving unregistered gaming applications.

It has sought tax recovery and investigation through Interpol, CBI, and ED against offshore gaming companies, which are estimated to owe over Rs 2 lakh crore in unpaid taxes.

The plea has sought a direction to Union ministries of Electronics and Information Technology, Information and Broadcasting, Finance and Youth Affairs and Sports to do a harmonious interpretation of provisions of the Promotion and Regulation of Online Gaming Act, 2025, and laws made by state legislatures to prohibit online gambling and betting games operating in the guise of social and e-sports games.

The Act lays down a comprehensive framework to promote safe digital recreation while prohibiting harmful practices linked to online money games.

The petition names six respondents, including four Union ministries and the two leading app store operators, Apple Inc. and Google India Pvt. Ltd.

The CASC has urged the top court to direct the government to clamp down on the proliferation of betting and gambling applications, which they claim are inflicting widespread social and economic harm across the country.

"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.

The plea said this unchecked expansion of online gaming has created what they describe as a national crisis, affecting half of India's population and leading to financial ruin, mental health issues and even suicides. The plea has sought a nationwide prohibition on online gambling and betting platforms operating as esports or social games.

In one of the prayers, it has sought blocking orders under Section 69A of the IT Act against all unlawful betting sites and apps.

The PIL has also sought directions for the protection of the data of minors already collected by online gaming companies.

Top cricketers and film stars are endorsing such unlawful games leading to cyber frauds, addiction, mental health disorders and suicides, the PIL alleged.

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.