Supreme Court issues notice on betting sites disguised as esports platforms

The Supreme Court of India has issued a notice to the Union government regarding a public interest litigation filed by the CASC (Centre for Accountability Systemic Change). The petition demands strict action against illegal betting and gambling websites that are allegedly operating under the pretence of esports and social gaming platforms.

A bench comprising Justices JB Pardiwala and KV Viswanathan heard the case on Monday and directed the government to submit a comprehensive response. The court also ordered that this case be linked with the ongoing batch of petitions challenging the Promotion and Regulation of Online Gaming Act (PROGA), 2025, which is scheduled for a detailed hearing on November 4.

During the proceedings, VC Bharathi, the panel counsel representing the Union government, argued that the newly enacted PROGA would adequately address the concerns raised in the petition once it is formally notified and implemented. The counsel emphasized that only the section authorizing future notifications has been activated so far, with other provisions to follow upon formal notification.

The petitioner's counsel countered that the new legislation is insufficient in curbing the spread of illegal betting and gambling applications. They argued that more than 2,000 betting and gambling platforms continue to operate freely across India, often disguising themselves as social or esports gaming apps that are accessible to minors.

The petition contends that the new legislation provides indirect entry points for esports and online social games, many of which continue to engage in real-money betting activities. Despite six advisories and parliamentary discussions, the petitioner claims there is no explicit provision banning online betting.

The PIL requests several directions from the court, including a harmonious interpretation of central and state gaming laws to ensure consistent prohibition of online gambling. It seeks to block orders under Section 69A of the Information Technology Act, 2000 against illegal betting websites and mobile applications.

The petition also calls for the Reserve Bank of India, NPCI, and UPI platforms to restrict financial transactions linked to unregistered online money gaming entities. It advocates for the adoption of stringent measures similar to the Tamil Nadu Prohibition of Online Gaming Act, 2022 across all states.

Additionally, the petitioner demands that Google Play Store and other intermediaries whitelist only licensed gaming apps authorized by Indian authorities. The PIL seeks recovery of pending GST and income tax dues from offshore operators through enforcement agencies, including the ED, CBI, and Interpol, along with protection of children's data collected by online gaming platforms.

CASC, a registered non-governmental organization, submitted detailed research, including a list of 387 specific betting apps to the authorities, urging immediate action. The bench instructed the government to verify these claims and take appropriate steps pending the outcome of the proceedings.

The court has directed the Union government to file an affidavit responding to the allegations and ensure the issue is heard alongside related cases concerning legality, taxation, and federal jurisdiction over online gaming and betting regulation.