The Supreme Court has issued a notice to the Central government, seeking its response on a petition demanding a ban on online gambling and betting platforms operating across the country. The court asked the government to clarify what concrete steps have been taken so far to regulate or restrict such platforms that are allegedly exploiting legal loopholes under the guise of e-sports and social gaming.
The petition, filed by the Centre for Accountability and Systemic Change (CASC) and other organizations, claims that nearly 2,000 illegal betting and gambling apps are functioning in India, luring users — especially youth — into addiction and financial distress.
Petitioner’s Argument
Appearing for the petitioners, advocate Virag Gupta informed the apex court that he had already shared detailed information about these 2,000 betting and gambling applications with the government, but no meaningful action has been taken so far.
“These apps are facilitating large-scale money laundering and unregulated financial transactions under the pretext of online gaming,” Gupta told the bench, adding that many platforms also target minors and low-income users.
The Supreme Court has directed the Centre to outline its policy framework and enforcement mechanism for digital gaming and betting regulation. The matter will be heard further along with other pending petitions next Tuesday.
ED Freezes ₹35 Crore Linked to Online Betting Racket
In a parallel development, the Enforcement Directorate (ED) has frozen over ₹35 crore deposited in 300 bank accounts, allegedly linked to proceeds from illegal online betting and gambling operations.
Officials said the action was initiated by the ED’s Ahmedabad zonal office against one Jitendra Tejabhai Heeragar, under provisions of the Prevention of Money Laundering Act (PMLA). The funds were provisionally attached through an interim order issued by the agency.
Growing Concern Over Digital Gambling and Financial Crimes
Experts have warned that online gaming and betting apps are fast emerging as a major source of cyber-enabled financial crime, involving data theft, cryptocurrency transfers, and untraceable cross-border money flows.
Cybercrime expert Professor Triveni Singh noted that:
“Online betting is no longer just a gambling issue — it has evolved into a full-fledged cyber-financial ecosystem. These platforms leverage foreign servers, digital wallets, and proxy payment gateways, making fund tracing extremely difficult. The government needs to establish a comprehensive regulatory framework and real-time surveillance system to monitor such activities.”
Analysts believe that the Supreme Court’s intervention could pave the way for a national policy on online gaming regulation, striking a balance between innovation and user protection. Without strong digital laws and financial monitoring systems, experts warn, India risks becoming a ‘digital Jamtara’ — a hub of cyber-enabled betting and fraud networks.
