Significant Concern Raised by Supreme Court Regarding Request to Prohibit Online Gambling Disguised as E-Sports and Social Games

The Supreme Court’s Stance on Online Gambling: A Legal Perspective

NEW DELHI: The Indian Supreme Court has stepped into the contentious debate surrounding online gambling, underscoring its importance during a recent hearing on a plea aimed at curbing betting platforms. The bench, comprising Justices J B Pardiwala and K V Viswanathan, recognized the plea as an “important issue” and emphasized the need for legal scrutiny in response to the growing concern about these platforms masquerading as social and e-sports games.

The Petition and its Objectives

The petition has been brought forth by the Centre for Accountability and Systemic Change (CASC) and advocate Shourya Tiwari. It calls for a stringent directive to the Indian government to clamp down on online gambling and betting applications that are allegedly inflicting significant social and economic harm across the nation. This plea especially seeks protections for the vulnerable — notably 15 crore children affected by the current legal ambiguities surrounding online gambling.

Legislative Framework

Legal counsel for the petitioners, Virag Gupta, highlighted the existing legal framework, specifically referencing the Promotion and Regulation of Online Gaming Act, 2025. The act is designed to bring some order to a chaotic landscape, yet the petitioners argue that there is a yawning gap in the law that needs urgent addressing. Gupta pointed out that, as per the Seventh Schedule of the Indian Constitution, betting and gambling fall under the State List, indicating a complex interplay between state and central legislation.

The Role of the Central Government

The Supreme Court bench stressed the central government’s critical position as a “gatekeeper” in this matter, possessing the power to issue blocking orders on gambling apps. Gupta noted that approximately 1,528 gaming apps have been blocked in the past, thereby demonstrating some governmental action in dealing with this issue. However, the petition acknowledges that this is simply not enough given the scale of the problem—where over 65 crore individuals are reportedly engaged in such gaming, generating an estimated business of ₹1.8 lakh crores annually.

A Call to Action

During the proceedings, the judges urged Gupta to serve a copy of the petition to the government’s legal representative. They reiterated the importance of having a comprehensive understanding of the petition’s implications and directed that the government’s counsel should assist the court in its next session. This collaboration is crucial for the court to devise appropriate measures to address the situation effectively.

Scope of the Petition

The plea spans multiple aspects, urging directives for several union ministries, including those overseeing Electronics and Information Technology, Finance, and Sports. It seeks a “harmonious interpretation” of existing laws to enforce a ban on online gambling and betting platforms camouflaged as social gaming. Notably, it identifies six respondents, encompassing four union ministries and two of the leading app store operators, Apple Inc. and Google India Pvt Ltd.

Legislative and Economic Impact

The complexity of online gambling regulation is further compounded by the ongoing legal battles in various high courts, where both government and gaming entities are involved in a tug-of-war over jurisdiction and legality. The petition reveals a disturbing trend: while gaming platforms thrive financially, the social fabric is fraying, with rampant implications for public health and welfare, particularly among minors.

Protecting Minors and Data Security

An essential component of the petition is the protection of minors. The plea calls for specific measures to ensure the safeguarding of data already collected by online gaming companies regarding young users. This concern reflects a broader societal issue: as technology evolves, so too does the need for regulatory frameworks that can adequately protect the most vulnerable populations.

Final Thoughts

As the Indian Supreme Court prepares to reconsider the legal landscape surrounding online gambling, the upcoming hearings promise to be pivotal. The outcome could redefine accountability and regulations in a rapidly evolving digital gaming industry, balancing the need for consumer protection with the burgeoning online gaming market. The ramifications of this legal scrutiny will likely resonate far beyond the courtroom, impacting millions of Indians engaged in online gaming and the regulatory environment governing such activities.

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