The Allahabad High Court has called upon the Uttar Pradesh government to establish a high-powered committee to examine the urgent need for regulation of online gaming and betting, stating that the existing colonial-era gambling laws are obsolete in the digital age.
Justice Vinod Diwaker, while hearing a petition seeking the quashing of gambling-related charges against two individuals — including one Imran Khan — observed that the Public Gambling Act, 1867 fails to address the sweeping changes brought about by digital and cross-border gambling platforms.
Committee Headed by Govt Economic Advisor
The court directed that the panel be headed by Professor K V Raju, economic advisor to the state government. It suggested that the Principal Secretary (State Tax) act as the member secretary, with other subject-matter experts forming part of the committee.
Court Flags Obsolescence of 1867 Law
“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,” the Court noted in its order passed last month.
Taking suo-motu cognisance of the matter, the Court underscored the urgent need for a modern, technology-sensitive legislation to tackle the psychological, social, economic, and national security implications of online gambling.
Psychological and Social Risks Highlighted
The Court flagged serious social concerns, noting the manipulative design of online platforms. “Psychologically manipulative algorithms, reward systems, and notifications are used to encourage prolonged use, leading to gaming addiction, anxiety, depression, and social isolation, especially among adolescents,” it said.
Students, it added, are increasingly affected, often to the detriment of academic performance and family relationships, while also suffering from disrupted sleep, lack of discipline, and withdrawal.
Grey Areas and Enforcement Challenges
The bench observed that India’s current gambling law offers negligible penalties, inadequate to deter large-scale operations. The legal status of fantasy sports, poker, and e-sports remains ambiguous, particularly given the blurred line between games of skill (permissible) and games of chance (prohibited).
Additionally, jurisdictional challenges arise since most online gambling platforms operate across state and national boundaries, often with servers located abroad and transactions routed through unregulated financial channels. The Court noted this opens the door to money laundering, financial fraud, and potential terror funding.
Proceedings Quashed Against Accused
On the merits of the case at hand, the Court quashed the ongoing criminal proceedings against the accused, observing that the police could not have investigated a non-cognisable offence without a magistrate’s order.
However, the police were granted liberty to initiate a fresh investigation after complying with the procedural law.
