Right to trade of online gaming platforms can’t be at the cost of human lives, government tells Supreme Court

The Centre told the Supreme Court that online money gaming entities had no right to trade or profession at the cost of human lives, as money sourced through these activities was laundered or used as funding for terror, besides being a reason for increasing addiction and fatalities among young users.

The government was justifying the introduction of the Promotion and Regulation of Online Gaming Act to curb the rapid spread of online money games, creating “serious risks for individuals, families and the nation”. Companies and online platforms, represented by senior advocate C.A. Sundaram and advocate Rohini Musa, urged the apex court to stay the law.

The government, however, argued that an estimated 45 crore people were negatively affected by online money games and faced a loss of more than ₹2,000 crore.

“There can be no right to profession or trade at the cost of human lives, which online money gaming is known to take, month after month, across the country,” the Centre submitted. Right to trade and profession is a fundamental freedom under Article 19 of the Constitution.

‘Legal violations’

The government said “systemic legal violations” linked to online money gaming (OMG) platforms include large-scale tax evasion, money laundering, cross-border illicit fund flows and “vulnerabilities” relating to potential terror financing and other economic offences.

The government affidavit said “money mule accounts” had been identified by banks in which customer IDs were found linked to OMG websites.

“OMG displayed an increased popularity after COVID and it coincides with an uptick in fraud cases involving online gaming, gambling and illegal loan apps,” the government pointed out.

Gaming-related suspicious transactions overlap with cybercrime and fraud, the affidavit said.

It said identity theft and personal data compromise was a real danger on many OMG platforms. “Interactions with unknown players further expose users to intruders, predators, spyware, viruses and worms,” the government said.

Government data showed a sharp increase in outward remittances, especially in 2023-2024, where outflows exceeded ₹5,700 crore.

The government gave details of the deaths linked to OMGs reported in States like Kerala, Tamil Nadu, Telangana and Andhra Pradesh, including that of a 13-year-old student from Indore reported in July 2025.

The affidavit said the Parliament, through the Act, had adopted a reasonable classification by differentiating real money games, which was “pernicious and hazardous” and e-sports.

“This classification between games that involve money and expectations of enrichment and those that do not involve such expectations is in line with the vision of the Parliament and has a rational nexus with the object sought to be achieved, that is, protection of the youth, public health, prevention of terror funding and money laundering,” the government reasoned.