India: Supreme Court seeks government response on plea to ban celebrity-endorsed betting apps

India’s Supreme Court has asked the central government to respond to a petition calling for a nationwide ban on illegal betting and gambling applications, particularly those promoted by celebrities and sports personalities.

The directive came during a hearing on Friday, where a bench comprising Justices Surya Kant and N. Kotiswar Singh acknowledged concerns over unregulated gambling activities during major sporting events such as the Indian Premier League (IPL).

The petition, filed by social activist K.A. Paul, alleges that over a thousand people in Telangana have died by suicide after losing money through betting apps. Paul urged the court to direct the government to ban such platforms entirely and to enact central legislation to address what he described as an unregulated and dangerous industry.

“Yes… in the name of IPL, there are thousands and thousands who are betting,” the bench remarked during the hearing, adding that while they were sympathetic to the issue, legislative reform alone may not be a complete solution.

However, the court took note when the petitioner pointed out that several public figures, including former cricketers, were promoting these platforms and claimed that approximately 30 crore Indians were using such apps. The court then proceeded to issue a formal notice to the Centre.

The petition argues that online betting, gambling, and fantasy sports have contributed to rising financial distress, addiction, illegal transactions, and suicides, particularly among young people.

It cites investigations by Indian law enforcement agencies, including the Enforcement Directorate and cybercrime units in Hyderabad and Visakhapatnam, which have uncovered illegal betting syndicates with alleged links to political figures, celebrities, and criminal networks.

A central concern of the petition is the legal ambiguity stemming from the absence of uniform national legislation on online betting. While gambling is governed by state laws under the Public Gambling Act of 1867, the rise of digital platforms has outpaced regulatory frameworks.

The petitioner contends that many operators exploit loopholes by presenting betting platforms as “games of skill” to avoid restrictions, using celebrity endorsements to attract users.

The online gambling industry in India was valued at $3.7 billion in 2023 and is projected to grow to $9.1 billion by 2029. An estimated 50 million Indians participate in online betting, with revenue lost due to unregulated offshore operators. A recent study indicated Indian users made about $12 billion in deposits with unlicensed platforms last year, potentially costing the government around $2.5 billion in tax revenue.

The petition also highlights a recent case in Telangana where 25 celebrities and influencers were investigated for allegedly promoting illegal betting apps. Some of those named have maintained that their endorsements were limited to skill-based gaming platforms allowed in specific jurisdictions.

The Supreme Court is now considering whether to extend notices to all states and Union Territories after receiving the Centre’s response. A review of the matter is expected following the government's submission.