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Potential fallout for Indian esports and fantasy sports sectors.

Photo by Subhashish Panigrahi via Wikipedia

The Supreme Court of India is deliberating on a Public Interest Litigation (PIL) that could potentially result in a nationwide ban on online betting apps.

The petition, filed by Dr. K.A. Paul, seeks to protect Indian youth and vulnerable populations from the risks posed by unregulated digital gambling platforms. According to the PIL, many betting and gambling services are being “disguised as fantasy sports and skill-based games,” a claim that has sparked serious discussions at the highest level of India’s judiciary.

Two key cases were cited in the petition to underline the urgency of the matter. The first involves an investigation into 25 celebrities, including Bollywood actors, cricketers, and social media influencers, allegedly promoting betting platforms covertly. The second references a tragic incident in Telangana, where 24 individuals reportedly died by suicide due to debts incurred from online betting.

Paul and fellow petitioners argue that India lacks consistent oversight and legal mechanisms to curb this problem. They are pushing for the regulation of online gambling “in the name of the larger public interest to safeguard the youth of India from the unregulated, exploitative, and dangerous online betting industry operating under the garb of fantasy sports and skill-based gaming.”

PUBG Mobile Club Open India Finals. Photo via PUBG Mobile Esports

The Supreme Court has initiated consultations with multiple authorities, including the Reserve Bank of India, the Enforcement Directorate, and the Telecom Regulatory Authority of India. In addition, major tech companies and platforms operating in the online gaming ecosystem, such as Google, Apple, Dream11, Mobile Premier League, and A23 Games, have been contacted for their positions and compliance records.

This comes as Google mulls changes to its Real Money Games (RMG) policies in India. While plans to expand RMG support were previously paused due to regulatory uncertainty, the company is now back under scrutiny, with its representatives being summoned by the Enforcement Directorate over a suspected money laundering case linked to betting apps on the Play Store.

At present, only three states—Goa, Daman, and Sikkim—have regulated online gaming markets. Although Karnataka had shown signs of introducing a mixed model, its proposed framework appears to exclude online sports betting and would only support fantasy and skill-based games like rummy. This legal patchwork has made enforcement and regulation inconsistent across the country, and some states have already enacted measures that conflict with existing constitutional protections.

Esports and online betting could see major disruption in India

Keen Gaming win Dota 2 ESL One Mumbai 2019. Photo via ESL

The implications of a nationwide ban could be massive for India’s fast-growing digital gaming sector, especially in esports and fantasy sports. If fantasy games and real-money contests are banned or severely restricted, companies like Dream11, MPL, and even esports-adjacent betting firms could see significant downturns.

The esports ecosystem in India, heavily intertwined with fantasy gaming and skill-based wagering for monetization, could face serious headwinds if the Supreme Court ruling leads to a nationwide ban. Potential consequences include reduced funding, diminished player incentives, and a retreat by advertisers wary of regulatory uncertainty. Popular esports titles like CS2 and League of Legends, which anchor many of these betting platforms, could see a drop in engagement and sponsorship support.

The Supreme Court has issued formal notices to state governments for feedback, with the next major hearing scheduled for Aug. 18. The decision could set a transformative precedent, either paving the way for unified national regulation or imposing a sweeping ban with lasting impacts across esports, sports, gaming, and even tech.