Facts for Prelims (FFP)
Source: IE
Context: The Ministry of Electronics and Information Technology (MeitY) has issued blocking orders against 22 illegal betting apps and websites, including the Mahadev online betting platform, following the investigations by the Enforcement Directorate (ED) into the illegal betting app syndicate.
What is Mahadev app case?
The case involves illegal betting activities through the Mahadev Online Book. The Enforcement Directorate (ED) is conducting a money laundering probe. Several individuals, including actors, Politicians and businessmen, have been accused of promoting and facilitating illegal betting.
What is Online betting?
It refers to the act of placing bets on various events, sports, or games through internet platforms.
The legal aspect of Online Betting:
| Aspect | Description |
| Legal Basis for Ban | A ban on online betting is issued under Section 69A of the IT Act 2000. |
| Section 69A empowers the central government to block websites or apps threatening national interests. | |
| Jurisdiction | Betting and gambling are part of the State List under the 7th Schedule. Online betting often operates in several states with different rules. This creates regulation and governance challenges. |
| Amendments | Amendments to Information Technology Rules 2021 prohibit online real money gaming or betting websites. |
| Self-regulatory body oversight is mandated to ensure responsible gaming practices (games do not involve wagering outcomes) | |
| User Verification: Online game intermediaries must obtain user KYC details and prevent third-party financing. | |
| Advertisement Restrictions: Direct or surrogate advertisements of betting or gambling are prohibited. | |
| State Regulations | Sikkim permits online gambling, while Telangana maintains a zero-tolerance policy towards all forms of gambling. |
| The Chhattisgarh Gambling (Prohibition) Act, 2022, and the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, aim to restrict gambling activities and their promotion in various media. |
