The Supreme Court of India has acknowledged the growing prevalence of online betting and loan applications as a matter of significant public concern and has sought responses from all state governments regarding their regulation. A bench comprising Justices Surya Kant and Joymalya Bagchi addressed a Public Interest Litigation (PIL) highlighting the potential dangers of these platforms, particularly their impact on vulnerable individuals.
The PIL, filed by K.A. Paul, a Hyderabad-based businessman and social activist, alleges that numerous individuals, including children, have tragically died by suicide after engaging with online betting and gambling applications. The petition also seeks interim measures to restrain celebrities from endorsing these apps and to restrict media publicity surrounding them. Paul argued that these celebrities should be immediately restrained, and the media should not show these endorsements, as over 30 million teens are affected by using them. He also pointed out that even when the government bans one application, another with a different name but the same profile surfaces online the next day. The petition further referenced an FIR filed in Telangana against 25 celebrities, including Bollywood stars and cricketers, for promoting betting apps.
The Supreme Court has directed all states to respond expeditiously to the plea, listing the matter for a priority hearing on August 18, 2025. The court's intervention underscores the urgency of addressing the regulatory vacuum surrounding online betting platforms. Notices have also been issued to key regulatory bodies, including the Reserve Bank of India (RBI), the Enforcement Directorate (ED), and the Telecom Regulatory Authority of India (TRAI), as well as tech giants like Google and Apple, and gaming platforms such as Dream11, MPL, and A23 Games.
The core issue at hand is whether these applications should be considered online gambling and betting applications or games of skill. The PIL argues that online betting, often disguised as fantasy sports or skill-based gaming, is exploitative and lacks uniform regulation under Indian law. It emphasizes that betting, whether online or offline, is inherently a game of chance and falls within the ambit of gambling, which is prohibited in many states under the Public Gambling Act of 1867. The absence of a comprehensive central law to regulate online betting further exacerbates the problem.
The Supreme Court's involvement reflects a growing concern about the detrimental effects of unregulated online betting and loan apps, particularly on young people. The court's willingness to consider interim directions suggests a proactive approach to mitigating the potential harm caused by these platforms. The outcome of the hearing on August 18 could have significant implications for the future of online betting and gaming in India, potentially leading to stricter regulations and greater consumer protection.
