In a recent judgment, the Madras High Court called for monitoring of the online gaming industry as many youngsters are being enticed with prize money & gaming sites are turning out to be virtual gambling houses.

The court opined that “To regulate the physical sports/games, we are having a legislative set up, but having such a set up to deal with the emerging online games/virtual games is the need of the hour. A comprehensive regulatory framework by a regulatory body is necessary to regulate the online sports and to curb any illegal activities as well. In fact, such regulation of online sports would encourage investment in the sector, which could lead to technological advancements as well as generation of revenue and employment. …This court is not against the virtual games, but, the anguish of this court is that there should be a regulatory body to monitor and regulate the legal gaming activities, be it in the real world or the virtual world. Needless to say that if the government intends to pass a legislation in this regard, all the stakeholders should be put in notice and their views should be ascertained.”

A paradigm shift

The Madras High Court has to be lauded for its recommendation to regulate the online gaming industry in India. The Indian gaming industry is presently undergoing a paradigm shift with the evolution of television, digital & online gaming models. A combined effect of the Digital India initiative of the current government & the Covid-19 lockdown has contributed to online gaming becoming popular & mainstream.

Sure to say, the court has not been unaware of the ill-effects of online gaming. Justice B Pugalendhi noted that “almost in all the social media, youngsters are being attracted, to play such online games, by alluring with prize money. Gaming sites are also partaking a slice on the winning hand, as of a virtual gambling house.”

The judgment concludes with a telling directional expectation that it “hopes and trusts that this government shall take note of the present alarming situation and pass suitable legislation, thereby, regulating and controlling such online gaming through licence, of course, keeping in mind the law of the land as well as the judicial precedents in this regard…”

Although the judiciary has not provided policy guidelines, likely out of respect for the separation of powers doctrine, it has nudged Parliament and the Executive to come up with regulations for this sunrise industry. The All India Gaming Federation (AIGF) has a self-regulation framework and a skill games charter.

What is required is that the parliament meaningfully engages with the sector, which already exhibits enormous potential for investments, and for revenue to fill the government’s coffers. Prompt governmental engagement is required, especially in the current difficult times when the country’s priority is to get the economy up & running.

The writer is a former Judge of the Supreme Court and a key member of the AIGF Advisory Panel