New Delhi — The unchecked rise of online gaming in India has prompted a new public interest litigation (PIL) in the Supreme Court, which describes the phenomenon as a “national crisis” touching nearly half of the country’s population. The plea, filed by the Centre for Accountability and Systemic Change (CASC), urges the Court to direct the Centre to impose a nationwide prohibition on online gambling and betting platforms that allegedly disguise themselves as social or e-sports applications.
The petition argues that these platforms are driving financial distress, mental health disorders, and even suicides, while exploiting regulatory gaps in India’s digital framework. It cites rampant endorsement by top cricketers and film stars, alleging that such campaigns normalize addictive gambling behavior among minors and young adults.
According to the plea, several platforms already under investigation have created an annual business of more than ₹1.8 lakh crore, with an estimated 65 crore Indians playing such games.
Legal Grey Zones and Regulatory Conflict
At the heart of the case lies a complex interplay between central and state laws governing online gaming. While the Promotion and Regulation of Online Gaming Act, 2025 provides a framework for lawful digital recreation, betting and gambling remain prohibited under most state laws. The petition argues that many gaming firms continue to operate in this “regulatory blind spot,” branding themselves as e-sports or skill-based competitions to evade scrutiny.
The PIL has named six respondents — including four Union ministries and two leading app store operators, Apple Inc. and Google India Pvt. Ltd. — seeking accountability for enabling access to unlicensed betting platforms. It also invokes Section 69A of the Information Technology Act, requesting the government to issue blocking orders against all unlawful betting websites and apps.
The plea further demands that RBI, NPCI, and UPI systems be instructed to disallow transactions to unregistered or offshore gaming operators, some of which allegedly owe over ₹2 lakh crore in unpaid taxes.
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Data, Crime, and the Shadow Economy
Beyond addiction, the petition raises grave concerns about data privacy, cyber fraud, and money laundering. It warns that the algorithms used by certain platforms are “so opaque that it is impossible to tell who is playing,” enabling criminal syndicates to launder funds under the guise of gaming transactions.
The CASC also points to the potential misuse of minors’ data collected by gaming firms and seeks directions to safeguard such information. It has requested the CBI, ED, and Interpol to initiate coordinated probes against offshore companies operating from tax havens.
“The fraud and cheating algorithms are such that it’s impossible to tell who is playing,” the plea said, arguing that online betting now constitutes a parallel economy that escapes both tax oversight and criminal accountability.
Supreme Court’s Response and the Road Ahead
A Bench of Justices J.B. Pardiwala and K.V. Viswanathan heard the matter and directed the petitioner’s counsel to serve a copy of the PIL to the government’s counsel. The Court also sought assistance from Additional Solicitor General V.C. Bharathi and listed the matter for further hearing in two weeks.
The Supreme Court’s order, issued on October 22, 2025, reflects growing judicial concern over India’s online gaming ecosystem. While the IT Minister’s recent remarks in Parliament highlighted the government’s intention to regulate digital recreation responsibly, the CASC contends that the current system enables “the serious evil of gambling to creep into society under the guise of entertainment.”
