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Centre Cites Terror-Financing Links in Supreme Court Defense of Online Money-Gaming Ban

A consolidated hearing is expected next following the government's offer of classified evidence in a sealed cover.

Overview

  • In a detailed affidavit, the Union describes unregulated real‑money gaming as a menace tied to money laundering and potential terror financing, alleging mule accounts, crypto routes, hawala networks and offshore entities.
  • Official data cited to the court show STR inquiries rising from one in 2019–20 to 239 in 2023–24, covering 7,056 accounts and outward remittances above ₹5,700 crore last fiscal.
  • Arguing severe public‑health harm, the Centre estimates annual user losses of about ₹20,000 crore, says roughly 45 crore people are affected, and points to suicide clusters in Karnataka, Telangana and Tamil Nadu.
  • The Promotion and Regulation of Online Gaming Act, 2025 has presidential assent but has not been notified, and the government says requests for interim relief are premature.
  • Petitioners led by Head Digital Works contend a ban on games of skill violates Article 19(1)(g), while the Union claims online money gaming is res extra commercium and clarifies that e‑sports and non‑money games remain allowed.