Particle.news
Download on the App Store

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

The government told the court the law has not been notified and used that status to argue against interim relief sought by gaming companies.

Overview

  • Filing a detailed affidavit, the Union offered to submit classified material in a sealed cover to support claims that real-money gaming channels have been used for terror financing and money laundering.
  • Government analyses reported a surge in gaming-linked Suspicious Transaction Reports from 1 in 2019–20 to 239 in 2023–24 and outward remittances exceeding ₹5,700 crore last fiscal, flagging offshore entities, proxy accounts, crypto routing and hawala.
  • The affidavit framed the sector as a public-health risk, citing addiction, debt traps and suicides, including 32 cases in Karnataka and 20 in Telangana since 2023, and estimated ₹20,000 crore in annual losses affecting about 45 crore users.
  • Asserting parliamentary competence and calling online money gaming res extra commercium, the Centre said prohibition targets only money games, with e-sports and non-money titles remaining permitted.
  • Head Digital Works and others argue a blanket ban on games of skill violates Article 19(1)(g) and seek a stay, while the bench led by Justice J B Pardiwala indicated it will try to take up the matter on Thursday.