The government justified the introduction of the Online Gaming Promotion and Regulation Act to curb the rapid spread of online gambling, which creates “serious risks for individuals, families and the nation”. | Photo credit: The Hindu
The Center told the Supreme Court that online gambling operators had no right to trade or practice profession at the cost of human lives as the money earned through these activities was laundered or used to finance terrorism, apart from being the reason for increasing addiction and mortality among young users.
The government justified the introduction of the Online Gaming Promotion and Regulation Act to curb the rapid spread of online gambling, which creates “serious risks for individuals, families and the nation”. The companies and online platforms, represented by senior advocate CA Sundaram and advocate Rohini Musa, urged the apex court to stay the law.
However, the government claimed that an estimated 45 million people were adversely affected by online gambling and faced a loss of over ₹2,000 crore.
“There can be no right to a profession or trade at the cost of human lives, which online gambling is known to do month after month across the country,” the center said. The right to trade and profession is a fundamental freedom according to Article 19 of the Constitution.
‘legal infringement’
The government said “systemic legal violations” associated with online money gaming (OMG) platforms include widespread tax evasion, money laundering, cross-border illicit flows of funds and “vulnerabilities” related to the potential financing of terrorism and other economic crimes.
The government’s affidavit said the banks had identified “mule money accounts” in which customer IDs linked to OMG websites were found.
“OMG has shown increased popularity post-Covid and coincides with an increase in fraud cases involving online gaming, gambling and illegal loans,” the government pointed out.
Suspicious gaming-related transactions overlap with cybercrime and fraud, the affidavit said.
She said identity theft and compromise of personal data are real dangers on many of OMG’s platforms. “Interactions with unknown players further expose users to intruders, predators, spyware, viruses and worms,” the government said.
Government data showed a sharp rise in outgoing remittances, especially in 2023-24, when the outflow exceeded ₹5,700 crore.
The government provided details of OMG-related deaths reported in states like Kerala, Tamil Nadu, Telangana and Andhra Pradesh, including the death of a 13-year-old student from Indore reported in July 2025.
The affidavit said Parliament, through the Act, adopted a reasonable classification by distinguishing between real money games that were “pernicious and dangerous” and e-sports.
“This classification between games that involve money and expectations of enrichment and games that do not involve such expectations is consistent with the vision of Parliament and has a rational connection with the objective to be achieved, namely the protection of youth, public health, the prevention of terrorist financing and money laundering,” the government reasoned.
Published – 26 Nov 2025 22:17 IST
