Srinagar, Jun 04: The Supreme Court has held that the rapid spread of online betting and gambling poses a serious threat to public order and public health, observing that “every mobile phone is now a virtual common gambling house” due to advances in technology and digital connectivity.
A Bench of Justice JB Pardiwala and Justice R Mahadevan upheld laws enacted by Tamil Nadu and Karnataka prohibiting online betting and gambling, including games classified as skill-based, reported LiveLaw.
The Court ruled that States are empowered to legislate on such activities under Entry 1 of List II of the Constitution relating to “public order”, noting that online gaming addiction, financial losses and gambling-linked suicides have far-reaching social consequences.
The Bench observed that public order extends beyond violence or physical disorder and includes public tranquillity, public safety, social stability and protection from economic disruption. It held that activities impairing public health or causing widespread social distress can also fall within the scope of public order.
Referring to the impact of online money gaming, the Court said rapid digitisation, smartphone penetration and digital payment systems have made betting and gambling widely accessible and increasingly normalised across society. It noted that participation is no longer limited to a small section, with a significant number of users coming from rural and lower-income backgrounds.
The Court said the objective of traditional gambling laws had been undermined in the digital era, as gambling activities are now accessible through mobile devices at any time.
It further observed that the consequences of online gambling extend beyond individual users and affect families and society at large. According to the judgment, many users are drawn into cycles of debt and false expectations of instant financial gains, leading to addiction, depression and financial distress.
The Bench also recognised online gambling as a public health concern, citing reports of suicides linked to gambling-related losses. It said such consequences justify State intervention under powers relating to public order and public health.
The Court referred to the World Health Organization classification of “gaming disorder” under ICD-11 and also took note of concerns raised earlier by the Gujarat High Court regarding internet gambling, including addiction, fraud and risks to children accessing gambling platforms online.
The judgment also noted that the Tamil Nadu law was preceded by a study conducted by the Justice K Chandru Committee, whose report documented the widespread social harms associated with online betting and gaming platforms.
Holding that the effects of online betting and gambling disturb the “even tempo” of social life, the Supreme Court concluded that States are constitutionally empowered to regulate and prohibit such activities in the larger public interest.
