The Supreme Court on Friday said the growth of online betting and loan applications is an issue of paramount public importance and sought responses of all states on regulating them.
A bench of Justices Surya Kant and Joymalya Bagchi said it will hear the PIL filed by K A Paul, a Hyderabad-based businessman, which claimed that many children have died by suicide after using online betting and gambling applications, and sought interim direction to restrain celebrities from endorsing them and the media from giving them publicity.
The bench said it is listing the matter for hearing on priority on August 18 and asked the states to respond to the plea expeditiously.
Paul contended that the main issue of regulation of these betting applications can be adjudicated in due course, but what was required in the interim is that celebrities, including cricketers, be restrained from endorsing them as many youngsters who consider them role models start using these applications.
“These celebrities should be immediately restrained and the media be asked not to show these endorsements as over 30 million teens are affected by using them. One Mahadev application was banned by the government, but there are several other applications,” Paul, who appeared in person, submitted.
Justice Kant agreed with the submission and said if the government bans one application, another application with another name but the same profile surfaces online the next day.
The counsel appearing for the Centre, which was issued notice on May 23, said another top court bench is hearing the same issue where the moot question to be decided is whether these applications can be considered as online gambling and betting applications or whether these are games of skill.
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“The issue which is being heard for the last 30 days will have a direct bearing on the question raised in the PIL whether these are online betting and gambling applications,” the counsel said, and sought deferment of hearing or tagging the matter with the pending petitions heard by a bench headed by Justice J B Pardiwala.
The top court asked for the assistance of the attorney general and solicitor general in the matter and said if necessary, it would pass necessary directions on the interim prayers after hearing all the parties.
On May 23, the top court said people were betting and gambling in the garb of the Indian Premier League (IPL) and sought the Centre’s response on the PIL filed by Paul.
The top court issued notice to the Centre on the PIL which alleged several online influencers, actors and cricketers are promoting such online apps, luring children in the process, and sought a complete ban on illegal betting apps, strict regulations on online gaming and fantasy sports, and enactment of a comprehensive law.
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Paul said in the case of cigarettes, their packets have pictures indicating the ill-effects of smoking, but in the case of betting apps, no such caution is publicised and even former Indian team cricketers promoted the applications during the IPL.
Paul has claimed to represent “millions of parents” whose children have died in the past couple of years.
“More than 1,023 people died by suicide in Telangana as 25 Bollywood and Tollywood actors/influencers played with the lives of the innocents,” he said.
He further said an FIR was lodged in Telangana against influencers, as the matter violated fundamental rights. Paul said in his plea that he moved the top court to safeguard the youth and vulnerable citizens from the perils of unregulated online betting and gambling disguised as fantasy sports and skill-based gaming.
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The plea said online betting has become a tool for money laundering, hawala transactions and illegal financial activities involving foreign entities, violating the Prevention of Money Laundering Act (PMLA), 2002.
Paul claimed thousands of families across India have suffered economic losses due to unregulated betting and loan apps and reports from the Enforcement Directorate and Cyber Crime divisions of Hyderabad, Visakhapatnam and Bengaluru highlight illegal betting syndicates leading to multiple suicides.
