Centre Tells SC Unregulated Online Gaming Apps Have Links to Terror Financing and Money Laundering

PTI, NEW DELHI, NOV 26, 2025: The Centre has told the Supreme Court that unregulated online gaming apps have links to terror financing and money laundering, justifying the need for a law to regulate these platforms.

A bench of Justices J.B. Pardiwala and K.V. Viswanathan said it would try to take up the matter for hearing on Thursday.

"Unchecked expansion of online money gaming has been linked to financial fraud, money laundering, tax evasion, and, in some cases, the financing of terrorism, thereby posing threats to national security, public order, and the integrity of the State," an affidavit filed by the Centre stated.

The government explained that online gaming platforms are aggressively marketed through extensive advertisement campaigns, including celebrity and influencer endorsements, which amplify their reach, particularly among youngsters and vulnerable groups.

The Centre noted that the unregulated online gaming sector poses significant risks to individuals, families, society, and the country, considering the technical aspects of the platforms, such as the use of algorithms and the involvement of national and transnational networks. Many of these platforms operate from offshore jurisdictions, bypassing domestic laws, undermining state-level regulations, and creating enforcement challenges due to extraterritorial jurisdiction issues.

In response to these concerns, the government introduced the Promotion and Regulation of Online Gaming Act, 2025. The Act aims to create a secure and structured digital environment while addressing risks related to public health, consumer protection, public morality, and financial sovereignty.

The Centre further stated, "There is enough material and data indicating that the unregulated online gaming sector has links with terror financing and money laundering." The government has offered to provide further details on these links in a sealed cover.

"In situations where society, national security, financial sovereignty, health, and public order are directly threatened by online money games, they cannot be permitted to be offered or facilitated, given the widespread and harmful impact they cause," the Centre concluded.