Online Gambling, Sports Betting: PIL In Madras HC Seeks To Restrict Participation Of Minors

The Madras High Court has reportedly sought a response from the Centre on a public interest litigation (PIL) seeking to restrict participation of minors in online gambling and sports betting websites and apps.

A division bench comprising Justices R. Mahadevan and J. Sathya Narayana Prasad took up the PIL filed by S. Ayyaa , an activist from Tirunelveli district, according to Times of India.

The petitioner argued that the growth in the number of gambling websites and applications in recent years has also led to a jump in the number of minors participating in online gambling and sports betting.

He also urged proper verification of age proof of participants on online gambling and sports betting sites and apps.

The petitioner cited the cases of suicides by minor boys due to online gambling addiction to highlight the need for firm laws. He said that he was forced to approach the court as the authorities didn’t take any steps on the pleas submitted by him.

The court adjourned the hearing in the case by two weeks.

The rising internet penetration in the country, along with the boost provided by the Covid-19 pandemic, has led to a sharp rise in the number of gaming startups, including those involved in fantasy gaming, over the last few years. The sector has also produced unicorns like MPL, Dream11, Games 24×7

The number of online gamers in India grew to about 400 Mn by mid-2020 from about 250 Mn in 2018, making the country the second-largest base of online gamers after China, as per a KPMG report.

According to another report by FICCI-EY, Indian online gamers grew 8% to 390 million in 2021 from 360 Mn in 2020. The online gaming segment in India reached INR 101 Bn in 2021 with a 28% growth, the report said.

The sharp growth has also brought the sector under regulatory scrutiny due to user complaints.

The government is now looking to levy a uniform Goods and Services Tax (GST) of 28% on online gaming, irrespective of the classification between the games of skill and the games of chance.

Currently, a tax of 18% is levied on the commission collected by online gaming platforms for games not involving betting or gambling.