Allahabad High Court directs Yogi Adityanath govt to constitute panel over online gaming, betting regulation
The Allahabad High Court on Thursday directed the Uttar Pradesh government to constitute a high-powered committee to examine if there was a need to regulate online gaming and betting, reported PTI.
Justice Vinod Diwaker gave the following direction after he observed that the existing Public Gambling Act, 1867, was a colonial-era law that addressed only conventional forms of gambling, like card games.
The bench stated that the panel would be headed by Professor K V Raju, the economic advisor to the Uttar Pradesh government. It may include the principal secretary (state tax) as a member secretary and other experts as members.
The court's direction came after two persons, including one Imran Khan, sought the quashing of gambling charges and criminal proceedings.
The duo was accused of running an online betting racket from home and earning crores of rupees, leading the locals in Agra to gamble away their earnings.
The court observed that a law must be enacted to meet the transformative changes in online betting and gaming and took a suo-motu cognisance of the issue.
"The Public Gambling Act is a pre-digital law. It makes no mention of digital platforms, servers, or cross-border transactions. Its enforcement is limited to physical gambling houses and has no jurisdiction over virtual gambling environments accessed via mobile phones, computers, or offshore servers," it added.
The court observed that the existing law has lost its impact and relevance in the era of online gambling, as there exists no definition or regulation of online gambling.
It also highlighted that the law presently only provides for negligible penalties, which do not deter large-scale operations.
"There is a lack of clarity on the legal status of fantasy sports, poker, and e-sports. Jurisdictional issues also arise, as online platforms operate across state, national, and international boundaries," the court added.
As per the details, the fantasy sports in India are stated to be in a legal grey area, hanging in between the line of games of skill and games of chance.
Among other things, the court also flagged the use of psychologically manipulative algorithms, reward systems, and notifications by online gaming platforms to encourage prolonged use.
The court said it has led to a rise in gaming addiction, anxiety, depression, and social isolation, especially among adolescents and young adults. "Students are increasingly distracted by online gaming, often at the cost of their academic performance and family relationships. The disruption of sleep cycles, lack of discipline, and social withdrawal are common consequences," the court added.
The judge noted several online betting operations function outside India's jurisdiction, with servers located abroad and transactions routed through unregulated channels.
This poses challenges for law enforcement and increases the risk of money laundering, financial fraud, and terror funding, it observed.
A modern, technology-sensitive legislation was therefore urgently needed to address the psychological, social, and national security implications of online gaming, it added.
Citing the merits of the case, the court observed since it involved a non-cognisable offence, the police could not have probed it without an order of the magistrate.
In May, the court in its decision quashed the proceedings against the accused but the police was granted the liberty to initiate a fresh investigation after complying with the law.
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