New Delhi, Nov. 26 -- The Union government on Tuesday told the Supreme Court that unregulated real-money online gaming has demonstrable links to terror financing and money laundering, offering to share classified material showing the specific nature of these connections as it mounted a vigorous defence of Parliament's decision to ban such games entirely. In a detailed affidavit responding to transfer petitions filed by gaming companies, including Head Digital Works Pvt Ltd, the Centre described the online real-money gaming ecosystem as a "menace" that has enabled systematic criminal activity involving tax evasion, mule accounts, crypto-routed fund diversion, hawala operations and offshore shell entities. "There is enough material and data that indicates that the unregulated online gaming sector have links with terror financing and money laundering," the affidavit stated. "Should this Hon'ble Court direct, the respondent is also willing to place the data pertaining to money laundering and terror financing links to online money games in a sealed cover for the perusal of this Hon'ble Court." Investigations revealed the use of front persons such as students, homemakers and retired individuals whose bank accounts serve as identity shields for criminal organisations, the affidavit said. It noted widespread recruitment of money mules through social media and messaging apps. Outward remittances through real-money gaming channels exceeded Rs.5,700 crore in FY 2023-24, with multiple Indian entities sending large sums to foreign jurisdictions known for weak financial oversight. The government estimated that Rs.20,000 crore is lost annually by users to real-money gaming companies and that around 45 crore Indians have been affected by online games.htc...