The Supreme Court of India is currently examining steps the government plans to take against illegal betting apps operating within the country. The court has acknowledged the significant public interest in regulating online betting and loan applications and has sought responses from all state governments on the matter.
Key Actions and Observations:
- Notice to Government Bodies: The Supreme Court has issued notices to several key regulatory bodies, including the Reserve Bank of India (RBI), the Enforcement Directorate (ED), and the Telecom Regulatory Authority of India (TRAI). These notices seek their response and planned actions regarding the ban on "illegal" betting apps across the country.
- State Government Involvement: Recognizing the critical role of state governments in enforcing any potential ban or regulation, the Supreme Court has issued notices to all states, requesting their input and proposed steps.
- Concerns Raised in PIL: The court is acting on a Public Interest Litigation (PIL) filed by Dr. K.A. Paul, who has raised concerns about the detrimental impact of these unregulated betting apps, particularly on young people. The PIL seeks a complete ban on illegal betting apps, strict regulation of online gaming and fantasy sports, and the enactment of a comprehensive law to govern this area.
- Allegations of Inaction: The PIL alleges that many states have not taken adequate steps to curb the proliferation of these betting platforms. It also highlights the accessibility of banned apps through VPN services, making enforcement even more challenging.
- Impact on Vulnerable Citizens: The petitioner has argued that unregulated online betting and gambling, often disguised as fantasy sports and skill-based gaming, pose a significant threat to Indian youth and vulnerable citizens. The petition also references instances of people facing financial ruin and even suicide due to debts incurred through online betting.
- Celebrity Endorsements: A key concern raised in the PIL is the role of celebrities, cricketers, and online influencers in promoting these betting apps. The petitioner argued that these endorsements mislead the public and entice vulnerable individuals, including children, to participate in online betting. The court is considering restrictions on celebrities endorsing these apps.
- Government Response: The Supreme Court has given the Union Government an opportunity to present its response and outline the steps it plans to take to address the issue of illegal betting apps. The court has indicated that it will prioritize the matter and schedule a hearing soon.
- Existing Laws and Regulations: The PIL argues that online betting is essentially a game of chance and falls under the ambit of gambling, which is prohibited in many states under the Public Gambling Act, 1867. The need for a uniform central legislation to regulate online betting has also been emphasized.
- Money Laundering Concerns: The petition also highlights the potential use of online betting platforms for money laundering, hawala transactions, and other illegal financial activities involving foreign entities, in violation of the Prevention of Money Laundering Act (PMLA), 2002.
The Supreme Court has listed the matter for further hearing on August 18, 2025 and has expressed its intent to consider issuing interim directions. The court has also acknowledged the difficulty in completely stopping people from engaging in betting or gambling, drawing a parallel to other crimes that persist despite legal penalties.
