Supreme Court Asks Centre to Respond on Online Gambling Ban

Supreme Court Seeks Centre’s Response on PIL Demanding Nationwide Ban on Online Gambling

Petition highlights addiction, financial fraud, and mental health risks linked to online betting

Court asks government to examine regulation and payment restrictions on illegal gaming apps

By Our Legal Reporter

New Delhi: October 23, 2025: The Supreme Court of India has sought the Centre’s assistance on a Public Interest Litigation (PIL) that demands a nationwide ban on online gambling and betting platforms. The petition argues that many of these platforms operate under the guise of social games and e-sports, causing widespread addiction, financial losses, and even mental health issues among users.

A Bench of Justices J.B. Pardiwala and K.V. Viswanathan directed the petitioner to serve a copy of the PIL to the Centre’s counsel and asked the Union government to respond. The matter will be heard again in the coming weeks.

The PIL and Its Demands

The PIL was filed by the Centre for Accountability and Systemic Change (CASC), a think tank that has previously raised concerns about digital governance and consumer protection. The petition makes several key demands:

A nationwide prohibition on online gambling and betting platforms.
Directions to the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), and UPI platforms to block monetary transactions with unregistered gaming applications.
Action against offshore companies allegedly evading taxes while operating gambling apps in India.
Directions to Apple and Google app stores to restrict unlawful gaming applications.
Stronger safeguards to protect minors’ data and prevent underage gambling.

Court’s Observations

The Supreme Court noted that the issue raises serious concerns about public morality, financial security, and mental health. The Bench emphasized that the Centre’s input is crucial since the matter involves multiple ministries, including:

Ministry of Electronics and Information Technology (MeitY)
Ministry of Finance
Ministry of Home Affairs
Ministry of Consumer Affairs

The Court also acknowledged that online gambling has become a pan-India issue, with different states adopting different laws, leading to confusion and loopholes.

Why This Case Matters

The PIL is significant because it touches upon several pressing issues:

Addiction and Mental Health: Reports suggest that online gambling has led to rising cases of debt, depression, and even suicides.
Financial Fraud: Many unregulated platforms are accused of cheating users and laundering money.
Youth Vulnerability: With over 650 million Indians using smartphones, minors are particularly at risk of exposure to gambling disguised as games.
Tax Evasion: Offshore companies allegedly earn thousands of crores annually without paying proper taxes in India.

Current Legal Landscape

India does not have a uniform national law on online gambling. Instead, states regulate gambling under the Public Gambling Act, 1867, and their own local laws.

Tamil Nadu, Telangana, and Andhra Pradesh have banned online gambling and rummy for stakes.
Karnataka and Kerala attempted bans, but High Courts struck them down, citing lack of legislative competence.
The Union Government has so far left regulation largely to the states, though it has introduced IT Rules for online gaming in 2023.

The PIL argues that this fragmented approach is ineffective and calls for a nationwide framework.

Expert Opinions

Legal Experts: Many lawyers believe the Supreme Court’s intervention could push the Centre to frame a comprehensive national law.
Social Activists: Campaigners against gambling welcomed the move, saying it could protect vulnerable families from financial ruin.
Industry Voices: Representatives of the online gaming industry argue that a blanket ban would harm legitimate e-sports and skill-based gaming platforms. They call for regulation, not prohibition.

Past Judicial Concerns

The Supreme Court and several High Courts have previously expressed concern about online gambling:

In 2021, the Madras High Court struck down Tamil Nadu’s blanket ban but urged the state to bring in a more balanced law.
The Karnataka High Court in 2022 quashed a similar ban, saying it violated the right to trade and profession.
The Supreme Court has repeatedly stressed that while games of skill are protected, games of chance amount to gambling and can be regulated or banned.

Broader Implications

If the Supreme Court directs the Centre to act, the outcome could reshape India’s digital economy:

For Users: Stricter rules could reduce addiction and fraud but may also limit access to legitimate gaming platforms.
For Industry: Companies may face tighter compliance requirements, including tax obligations and data protection norms.
For Government: A nationwide law could bring clarity, generate tax revenue, and curb illegal offshore operations.

Challenges Ahead

While the PIL raises important concerns, implementing a nationwide ban will not be easy:

Distinguishing Skill vs Chance: Courts and lawmakers must clearly define which games are gambling and which are skill-based.
Enforcement: Blocking offshore websites and apps is technically challenging.
Balancing Rights: Any law must balance consumer protection with the constitutional right to trade and profession.
Industry Pushback: The booming online gaming sector, valued at over ₹1.8 lakh crore annually, is likely to resist blanket restrictions.

Conclusion

The Supreme Court’s decision to seek the Centre’s assistance on the PIL marks a critical step in India’s debate over online gambling. With millions of Indians affected by addiction, fraud, and financial losses, the case could pave the way for a national framework to regulate or prohibit online gambling.

The coming hearings will determine whether India moves toward a blanket ban or a regulated model that distinguishes between gambling and legitimate online gaming. Either way, the Court’s intervention has ensured that the issue can no longer be ignored.