India Moves to Regulate Online Gaming Amid Links to Terror Financing and Money Laundering
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The Indian government has informed the Supreme Court that online gaming apps, operating without regulation, have connections to terror financing and money laundering. This has led to concerns over national security, public order, and financial integrity. According to an affidavit filed by the Centre, the unchecked expansion of online gaming has been linked to financial fraud, money laundering, tax evasion, and even terrorism financing. The government has expressed concerns over the aggressive marketing of these platforms, which often target vulnerable groups, including youngsters. To address these issues, the government enacted the Promotion and Regulation of Online Gaming Act, 2025. This law aims to create a secure and structured digital environment while addressing risks to public health, consumer protection, and financial sovereignty. The affidavit highlights the alarming rate of suicides linked to online gaming, with reports from various states including Karnataka, Telangana, and Tamil Nadu. The Centre estimates that the general public has lost approximately ₹20,000 crore per year to online gaming companies, affecting over 45 crore individuals. The Supreme Court has agreed to take up the matter for hearing and will consider the Centre's request to regulate the online gaming industry. The government has offered to provide more details on the links between online gaming and terror financing in a sealed cover. As the debate over online gaming regulations continues, the Indian government's efforts to address the associated risks and protect the country's national security, public order, and financial integrity are gaining attention.
