Online Gaming or Online Gambling: Delhi HC issues notice to Central, Delhi Government on plea to regulate online gaming
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Delhi High Court has issued summons to the Government of India and the Delhi Government on a petition seeking to regulate online gaming by establishing a regulatory panel to distinguish between a game of skill and a game of chance and decide what is legal. While issuing notice, a Division Bench of Acting Chief Justice Vipin Sanghi and Justice Sachin Datta also urged the Petitioner to include the Delhi government as a Respondent party, because gambling is a State issue under Entry 34 of List II in Schedule VII of the Indian Constitution. The case has been scheduled for hearing on November 16, together with Writ Petition 9436/2020, which raises identical issues.
Advocate Atul Batra filed the petition in the public interest, requesting a writ of mandamus to take the required steps to construct a regulatory body to govern online gaming, as suggested by the Law Commission, and a writ of mandamus to suspend the games that are not games of skill (as permitted in law).
According to the petitioner, despite the Law Commission's suggestion in its report titled "Legal Framework: Gambling And Sports Betting Including Cricket In India," various games of online betting are taking place in the name of skill.
It asks guidance from the authorities concerned on how to regulate online gaming laws and establish a regulator to pre-approve online games with a grievance redressal system.
It also demanded appropriate action against Cricket Millionaire Pvt. Ltd., which allegedly promotes gambling through games such as Cricket Millionaire, Overs Game, Fantasy Games, and Sport the Cricket Ball, all of which are games of chance.
The petition further mentions that if the relief is allowed as sought, it will help:
- School students who have free access to computers/mobiles and internet connectivity.
- People addicted to betting.
- College students.
During the hearing, Advocate Vaibhav Gaggar, representing the Centre, informed the Court that the relevant Ministries are discussing on the matter. However, as betting and gaming are state concerns, the Centre cannot legislate on this subject without the consent of the State. He noted that the Information Technology Act does not address the concerns of online gambling, and that the subject has been decided by the judiciary in other states as well.
Furthermore, it looks like the Indian online gaming community might face some challenges in the coming months as the Government of India is reportedly setting up a regulatory board to monitor online gambling. The panel will comprise the CEO of NITI Aayog, as well as secretaries from the ministries of home affairs, sports and youth affairs, information and broadcasting, electronics and information technology, and so on.
The surge in user numbers from 250 million at the end of FY 2018 to 400 million by mid-FY 2020 has expanded the market size of online fantasy sports to INR 24.3 billion. According to reports, a group of ministers have proposed for a 28 per cent GST on online gaming.
