The central government, justifying its decision to ban online money gaming, has told the Supreme Court that this unregulated sector may be linked to activities such as terror funding and money laundering.
New Delhi: The Supreme Court had sought a response from the central government regarding the ban on online money gaming. In an affidavit submitted to the Supreme Court, the central government stated that unregulated online money gaming is linked to terror funding and money laundering. The government further clarified in its affidavit that it would be premature to hear arguments on the validity of the Online Gaming Promotion and Regulation Act, as the law has not yet been notified even after receiving presidential assent.
Central Government's Stance
The central government informed the court that this law has been introduced specifically to protect youth and vulnerable sections from the adverse social, economic, psychological, and privacy impacts of online money gaming. Furthermore, this law will also help safeguard the country's financial system, national security, and sovereignty.
The government informed the Supreme Court that unregulated online gaming is being used for financial fraud, money laundering, tax evasion, and in some cases, terrorist financing. The affidavit stated, “The increasing proliferation of online money gaming has jeopardized national security, public order, and the integrity of the state.
Data to be Presented in a Sealed Envelope
The central government assured the court that it possesses sufficient data indicating links between unregulated online gaming and terror funding and money laundering. However, this data will be presented to the Supreme Court in a sealed envelope to ensure the security of sensitive information. The government's affidavit also mentioned that several online gaming companies are registered in small island nations.
An examination of the data revealed that user accounts for these companies were registered in Indian banks under the names of proxy individuals. Furthermore, money collected from users was sent out of India by providing false information. This situation poses a serious challenge to the country's financial security and regulatory framework. The government states that unregulated online gaming is not only a threat to individual investors but can also be misused for terrorism and international money laundering networks.
The central government also informed the court that online money gaming is particularly dangerous for youth. Its economic and psychological effects can impact the younger generation, not only affecting their financial situation but also creating social and moral crises in society.
