Centre Links Online Gaming to Trrorism funding in SC

By Thetripurapost Desk, New Delhi
Nov 26, 2025
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The Centre on Wednesday told the Supreme Court that unregulated online money-gaming apps are linked to terror financing, money laundering, fraud and tax evasion, making strict legislation essential for national security.

In an affidavit, the government said real-money gaming platforms are expanding rapidly, using aggressive advertising, celebrity endorsements and influencer promotions to target youth and vulnerable groups—resulting in financial losses and rising cases of suicides nationwide. Officials said consolidated data from states would show even higher numbers.

A bench of Justices J.B. Pardiwala and K.V. Vishwanathan said the matter may be heard on Thursday. Earlier, on September 8, the Supreme Court had transferred all High Court petitions challenging the Online Gaming Act, 2025, to prevent conflicting judgments.

Centre Justifies Complete Ban

The government argued that online money games cause severe harm to individuals, families, and society, with operations often routed through overseas networks that bypass Indian laws. It estimated annual losses of ₹20,000 crore, affecting nearly 45 crore users across the country.

Citing risks to public health, consumer safety and economic security, the Centre said a comprehensive law was needed to ensure a safe and innovation-friendly digital ecosystem.

About the Online Gaming Act, 2025

The Promotion and Regulation of Online Gaming Bill, 2025—which bans real-money gaming—was passed by Lok Sabha on August 20 and Rajya Sabha on August 21. After Presidential assent on August 22, it came into effect on October 1.

Key Provisions

Total Ban: All real-money games—whether skill-based or chance-based—are prohibited.
Penalties:
- Offering or promoting money games: Up to 3 years jail + ₹1 crore fine.
- Advertising such games: Up to 2 years jail + ₹50 lakh fine.
Regulatory Authority: A new authority will classify and register permissible online games.
Promotion of e-sports: Free-to-play e-sports titles like PUBG, Free Fire and social games will be encouraged.

Industry Impact

Following the law, major companies have halted real-money gaming:

Dream11 shut its cash-based games on Aug 22.
Gameskraft suspended rummy platforms like Rummyculture.
PokerBaazi ceased operations.
Zupee laid off 170 employees (30% of staff).

The Indian online gaming market—valued at ₹32,000 crore, with 86% revenue coming from real-money formats—was expected to reach ₹80,000 crore by 2029. Industry insiders warn that 2 lakh jobs may be at risk and the government could lose ₹20,000 crore annually in taxes.