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Informist, Tuesday, Sept. 2, 2025

 

NEW DELHI – The government Tuesday told the Delhi High Court that it will soon constitute a regulatory authority and frame rules and regulations under The Promotion and Regulation of Online Gaming Act, 2025. The court was hearing a petition by Bagheera Carrom (OPC) Pvt. Ltd. challenging the Act, which, according to it, was promulgated in haste, without stakeholder consultation and in violation of the fundamental rights, due process of law, federal principles, and the doctrine of separation of powers. 

 

Solicitor General of India Tushar Mehta argued that the government is promoting online gaming but online money games result in addictions and suicides, particularly of children. Mehta said that while the Act has received President Droupadi Murmu's assent, it has not been notified yet. "Unless a notification is issued, this Act cannot come into being," the court said. "Your (petitioner’s) apprehension that you will be prosecuted is not live as of today. We expect the government to frame rules. There cannot be an assumption that they won't constitute the authority. They may constitute the authority also. We are to wait."

 

Addressing the government, the court said, "Suppose e-sport is permissible, someone wants to create an online platform promoting e-sport. Whether whatever he contemplates to do for launching that is to be determined by the authority under the Act. Unless you (the government) constitute the authority and also promulgate rules and regulations, you won't be able to work on the Act." Apprehensions may be ironed out after the rules are framed, it added, and listed the plea for hearing after eight weeks. However, no notice was issued to the government.

 

Bagheera Carrom has sought that the Act be struck down as "ultra vires, unconstitutional, arbitrary, vague, disproportionate, violative of Articles 14, 19, and 21 of the Constitution", and beyond the legislative competence of Parliament. In the alternative, the petitioner sought a reading down of the prohibition laid under Section 5, the definitions of "online money game" under Section 2(1)(g), and "e-sports" under Section 2(1)(c) of the Act so as to bring the Act in line with judicial precedents holding skill-based games legally valid. It will preserve the constitutional distinction between games of skill and games of chance and protect the petitioner's right to carry on its legitimate business activity, particularly when it is in line with the laudable aims and objectives of the Act, the petitioner said.

 

The petitioner argued that the Act indiscriminately prohibits all forms of online money games irrespective of whether they are based on skill or chance. Bagheera Carrom said it had developed an online version of carrom, a game judicially recognised as a game of skill and regulated offline nationally by the All India Carrom Federation and internationally by the International Carrom Federation. It said it had invested a substantial sum in research, development, and compliance with existing state laws and the existing rules and regulations of the Ministry of Electronics and Information Technology, and even obtained certification from the e-gaming federation confirming that its platform is skill-based, non-algorithmic, without bots, non-betting, and fully compliant with responsible gaming practices. Despite such safeguards, its legitimate business has been jeopardised by the "vague, unfair, and overbroad" provisions of the Act, which exposes it to possible criminal prosecution and financial ruin, thereby infringing its fundamental rights, it said.

 

The Act obliterates the long-standing judicially recognised distinction between games of skill and games of chance, thereby treating unequal categories alike and falling foul of Article 14 on the ground of manifest arbitrariness, the company further said. It also violates the fundamental right to carry on trade and business guaranteed under Article 19(1)(g) of the Constitution, since skill-based games constitute a legitimate business activity recognised in judgments, it said.

 

Saturday, the Karnataka High Court had issued a notice to the Centre on a petition by Head Digital Works Pvt. Ltd, which operates India's marquee gaming brand "A23", against the government's "complete ban" on online money games. The high court has asked the Centre to file its response before the next hearing, due Monday, at least on the petitioner's interim prayer asking that the government not notify the Promotion and Regulation of Online Gaming Act, 2025.

 

The Act, imposing a complete ban on online money games, applies to games of chance, games of skill, and those that combine both. It prohibits advertising and promotion of such games and financial transactions related to these platforms cannot be processed by banks or payment systems. Further, the authorities will be empowered to block access to unlawful platforms under the Information Technology Act, 2000.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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