Every Mobile Phone Has Become A 'Virtual Gambling House', Online Gaming Addiction Threat To Public Health: Supreme Court
A bench of Justice JB Pardiwala and Justice R Mahadevan held that States can rely on their legislative power over “public order” under Entry 1 of List II of the Seventh Schedule of the Constitution to regulate and prohibit online betting and gambling activities, observing that the social harms associated with such activities have a sufficient nexus with concerns regarding public order.
The Court observed that online money gaming has a definite impact on the public in terms of addiction, financial losses and resultant suicides. The Court made the observations while upholding Tamil Nadu and Karnataka laws banning online betting and gambling, even on games of skill.
The Court held that public order includes a state of tranquillity among members of society, peaceful and orderly social existence, maintenance of the “even tempo” of community life, public safety, public interest and protection from social and economic disruption. The Court further held that public order is disturbed not only by violence or disorder but also by activities that impair public health, create widespread fear or panic, disrupt ordinary life or cause social and economic instability.
Applying these principles, the Court examined whether online betting and gambling create consequences serious enough to attract the States' power to legislate on public order.
State of Tamil Nadu had contended that rapid digitisation and technological development had led to significant online gaming addiction, unsustainable debt, financial distress and suicides.
The State had relied on the World Health Organization's recognition of "gaming disorder" in the International Classification of Diseases (ICD-11) as a persistent or recurrent pattern of gaming behaviour marked by impaired control and continuation of gaming despite harmful consequences.
The State had also argued that online platforms transcend traditional physical boundaries and enable instantaneous, large-scale participation, thereby amplifying risks of addiction, financial exploitation and social disruption.
Digital Age Has Changed Nature Of Gambling
The Court observed that technological developments had fundamentally altered the scale and reach of betting and gambling activities. It noted that online money gaming has expanded rapidly due to smartphones, internet connectivity and digital payment systems. Betting and gambling have become normalised to a significant extent because of the ease with which individuals can access gaming platforms, the Court observed.
It noted that participation in online money gaming is no longer confined to a limited class of users. Statistics placed before the Court indicated that large numbers of players come from rural areas and lower-income groups.
The Court said the objective of traditional gambling laws to prevent the proliferation of common gambling houses has been substantially undermined in the digital era.
“With the growth of technology, the mischief that the Public Gambling Act sought to curb i.e. prevent the rise of common gambling houses, has gone completely in vain as every mobile phone is now a virtual common gambling house as well as the instrument of gaming,” the Court observed.
Impact Extends Beyond Individual Players
The Court held that the consequences of online betting and gambling extend beyond individual participants and affect society at large.
The Court observed that widespread monetary losses and addiction associated with online money gaming are no longer isolated incidents. It noted that large sections of the population now have access to mobile phones and instant payment gateways, allowing betting and gambling activities to penetrate everyday life on an unprecedented scale.
The Court highlighted that many individuals are drawn into a cycle of false hope based on expectations of instant financial gains. This tendency normalises risk-taking behaviour and affects ordinary social life in a manner that goes beyond private individual conduct, the Court said.
Even Tempo Of Community Life Disturbed
The Court relied on the constitutional principle that public order is affected when an activity disrupts the “even tempo” of community life rather than merely causing harm to a particular individual.
Applying that test, the Court concluded that the effects of online betting and gambling are sufficiently widespread to affect the broader community.
The Court observed that addiction and financial losses linked to online money gaming have become common social phenomena and have repercussions across large sections of society. It held that such consequences pose a threat to public tranquillity, thereby bringing the issue within the States' legislative domain under Entry 1 of List II.
Addiction, Depression, And Suicide: Public Health Impact Of Online Gambling
The Court also opined that online money gaming presents a significant public-health concern. The Court held that addiction and depression arising from online money gaming, coupled with reports of suicides associated with gambling-related losses, indicate the existence of a wider public-health problem. The Court highlighted that these consequences extend beyond individual players and affect families and society at large, thereby justifying State intervention.
“Moreover, the addiction and depression that stems from indulging in online money gaming and the frequent suicides that are reported would go on to indicate that this poses a widespread public health issue as well. As seen from the above decisions, any activity that is detrimental to public health and impairs public health or constitutes a manifest nuisance would fall squarely within the State's competence under public order”, the Court held.
Internet Gambling Poses Unique Risks
The Court also referred to concerns expressed by the Gujarat High Court in Amit M. Nair v. State of Gujarat regarding internet gambling.
The High Court had noted that internet gambling raises many of the same concerns traditionally associated with gambling, including addiction, fraud and moral concerns, while also creating additional risks because of the ease with which children may gain access to gambling websites.
The Court also noted that Tamil Nadu's legislation was preceded by the appointment of the Justice K. Chandru Committee, which examined the impact of online gaming and betting.
The Court observed that the committee's report contained empirical findings regarding the widespread harms associated with betting linked to online gaming platforms. The Court rejected the argument that the State had acted without adequate factual basis and held that the legislation was supported by relevant material.
The Court ultimately held that the widespread accessibility of online betting and gambling, the resulting social harms, and the impact on community life provided a sufficient basis for States to invoke their legislative powers relating to public order.
Case no. – Civil Appeal Nos. 6124-6131 of 2023 and connected cases
Case Title – State of Tamil Nadu & Ors. v. Junglee Games India Pvt. Ltd. & Ors. and connected cases
Citation: 2026 LiveLaw (SC) 591