The Supreme Court has observed that online betting and gambling are no longer merely matters of personal choice or individual harm but have emerged as serious threats to public order and public health. In a significant ruling, the Court remarked that in the digital era, “every mobile phone has become a virtual gambling house.”
A bench comprising Justices J.B. Pardiwala and R. Mahadevan upheld the validity of laws enacted by Tamil Nadu and Karnataka that prohibit online betting and gambling. The Court held that state governments have the constitutional authority to legislate on matters concerning public order and may regulate or completely ban online gambling activities when they pose risks to society.
Addiction, Financial Ruin, and Suicides
The Court noted that online gambling has led to widespread addiction, severe financial losses, and, in some cases, suicides. It emphasized that the concept of “public order” extends beyond preventing violence and includes maintaining social harmony, public safety, and the overall welfare of society. Activities that adversely affect public health or create socioeconomic instability can also threaten public order.
Digital Technology Has Transformed Gambling
According to the Court, the rapid spread of smartphones, internet connectivity, and digital payment systems has fundamentally changed the nature of gambling. Easy access to online gaming platforms has made gambling increasingly common, drawing in users from all sections of society, including rural and economically weaker communities. The Court observed that traditional gambling laws were framed in a different era and primarily targeted physical gambling establishments such as casinos.
Risks of Fraud and Child Access
Referring to observations made by the Gujarat High Court, the Supreme Court highlighted the dangers associated with internet-based gambling, including addiction, fraud, and the ease with which minors can access gambling platforms. The Court also upheld the Tamil Nadu law, noting that it was based on detailed findings and practical evidence presented in the Justice K. Chandru Committee Report. It concluded that the state government had enacted the legislation on a sound and reasonable basis.
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