The Government of India has told the Supreme Court of India that unregulated real-money online gaming platforms have demonstrable links to terror financing, money laundering, and financial crime.
In a detailed affidavit defending the new Promotion and Regulation of Online Gaming Act, 2025 (PROGA), the government said that unchecked growth of such apps has created a “high-risk ecosystem” for illicit fund flows — involving offshore shell entities, mule accounts, crypto-layering, hawala networks, and cross-border transfers.
According to data cited by the Centre, suspicious-transaction reports tied to gaming platforms surged dramatically over recent years, indicating widespread laundering and illicit transactions.
The government also highlighted the social fallout: massive financial losses, rising addiction, and growing instances of suicide linked to real-money gaming, especially among economically vulnerable youth — underscoring public-health and moral risks.
With PROGA now in force, the Centre argues a complete ban is justified to protect national security, financial integrity, and citizens’ welfare, rather than trust the unregulated industry to police itself.
As the Supreme Court deliberates on the law’s constitutional challenge, the government’s stark warning lays bare the stakes: online money games are no longer just recreational — they represent a serious threat to national security, user safety, and financial sovereignty.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
