Supreme Court of India Explores Ban on Online Gambling

The Supreme Court of India is currently assessing a public interest litigation (PIL) submitted by the Centre for Accountability and Systemic Change (CASC). This organization, driven by goals to enhance governance accountability and uphold the rule of law, has requested judicial scrutiny over online gambling platforms that often mask themselves under the façade of social games or esports. The PIL aims to address the legal and societal implications of online betting in India, spotlighting the need for comprehensive regulation.

Impact and Regulatory Challenges of Online Gambling

Online gambling in India boasts a significant player base, with over 650 million individuals engaging in such activities, generating an estimated annual revenue exceeding $20.5 billion. The major thrust of the litigation, as reported by The Hindustan Times, is to petition the court to synchronize national and state laws under the suggested Promotion and Regulation of Online Gaming Act, 2025. The act seeks to outlaw the operation of gambling activities, including those masquerading as social games, esports, or even skill-based games like fantasy sports and poker, if they involve real-money transactions.

Efforts to Curb the Spread of Gambling and Its Economic Impacts

The litigation specifically challenges major technology companies, naming esteemed entities such as Apple Inc. and Google India Pvt Ltd as respondents. CASC encourages India's legislative bodies to give prominence to this new act which would impose stringent bans on all forms of real-money online gaming. The petition further requests the court to direct government intervention to target and dismantle applications causing social and economic hardships. This initiative aligns with concerns that gambling and betting are often considered unlawful across most Indian states, accompanied by numerous legal disputes pending in high courts.

Legislative Action and Public Policy Initiatives

To combat the societal ills linked with rapidly growing online gambling platforms, the recently enacted Promotion and Regulation of Online Gaming Act, 2025, provides a legislative framework. It emphasizes safeguarding the population from the adverse effects of gambling, both socially and economically. The IT Minister underscored the importance of this initiative in Parliament, highlighting the necessity to stem what is described as a 'serious evil' within society. In alignment with this policy, the PIL also calls for the empowerment of authorities to deter illicit betting through blocking unauthorized transactions and probing companies facilitating these platforms, with measures including tax recovery efforts.

Government's Fiscal Strategy and Criticism

In addition to these regulatory strategies, the Indian government has made headlines with its fiscal policy by implementing a 40% 'sin tax' on gambling along with other luxury goods, provoking extensive critique from stakeholders within the industry. This tax policy is part of a broader endeavor to address fiscal imbalances and signal a strong disincentive to engage in gambling-related activities, further illustrating India's complex interplay between governmental policy and burgeoning digital economies.