The Central Government told the Supreme Court that unregulated online gaming apps are linked to financial support to terrorism and money laundering. Therefore, it was necessary to bring a law to control these online platforms. The bench of Justice JB Pardiwala and Justice KV Vishwanathan said that it will try to hear the matter tomorrow i.e. on Thursday.
In the affidavit filed by the government, it has been said that the online gambling games which are growing without any restriction are also related to financial fraud, money laundering, tax evasion and in many cases raising money for terrorism. This situation poses a threat to national security, public order and integrity of the state.
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‘Online gambling games are having a bad impact on the society’
The affidavit also said that online gaming platforms are increasingly reaching the youth and vulnerable sections through large-scale advertisements, celebrity and social media influencer endorsements, thereby increasing their influence. The government said that online gambling games are having a negative impact on individuals, families, society and the entire country. Due to technological aspects such as electronic medium, algorithms and national-international networks, these companies operate from foreign countries, ignore domestic and state level laws and are extremely difficult to stop. For this reason, the Online Gaming Promotion and Regulation Act of 2025 was enacted.
‘Unregulated online games linked to funding of terrorism’
The government said that it was necessary for the public good that the central government takes responsibility for regulating the online gaming sector and to create a safe, orderly and innovation-friendly digital environment, so as to minimize the risks to the health, morality and economic security of the public. The government said it has sufficient evidence that unregulated online gaming platforms are linked to terrorism funding and money laundering. The government also said that if the court wants, it is ready to give this sensitive information in a sealed envelope. The government said that when the safety of society, national security, economic sovereignty, health and public order are at risk, such online gambling games cannot be allowed.
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‘Around 45 crore people were affected’
The government stated that the online gaming industry is completely unregulated and is not bound by the geographical boundaries of any state. This entire business runs on digital medium and reaches directly to the youth and weaker sections. Justifying the complete ban, the government said that the general public is losing about Rs 20 thousand crores every year to online gambling gaming companies and about 45 crore people have been affected by it.
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