The Supreme Court of India on Tuesday indicated that regular skill-based tournaments and competitions could be excluded from the purview of the Centre’s newly introduced online gaming law. The observation came during a hearing concerning petitions filed by several gaming firms challenging the constitutional validity of the online gaming regulations introduced under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023.
Court Seeks Clarity on Definition of 'Online Game'
A bench comprising Justices Sanjiv Khanna and Dipankar Datta sought detailed clarification from the Centre on how “online games” are defined under the law. The court noted that traditional skill-based tournaments, such as chess, bridge, and certain e-sports events, might not fall within the same category as online betting or gambling platforms. The justices highlighted the need for “clear differentiation” between games of skill and games of chance.
Gaming Industry Welcomes Court’s Remarks
Representatives from the online gaming industry have welcomed the Supreme Court’s observations, stating that this interpretation could bring much-needed relief and regulatory clarity. Industry associations argued that competitive, skill-based games have long been recognized as legitimate sports activities, and equating them with gambling could hurt India’s growing digital gaming economy.
Centre Defends Regulation to Protect Users
The Union Government, however, defended the new rules, emphasizing that they were primarily aimed at curbing the menace of illegal betting and protecting users—particularly minors—from addictive gaming and financial exploitation. Officials reiterated that the law does not intend to stifle innovation or restrict legitimate businesses but seeks to ensure transparency and accountability in the online gaming sector.
Background: India’s Push for Responsible Online Gaming
India’s online gaming sector has been under increased scrutiny following several reports of gambling addiction and fraudulent activities. The Centre’s 2023 amendment empowered a self-regulatory framework, requiring online gaming intermediaries to register and comply with safety and transparency standards. With the Supreme Court now examining possible exemptions, the final outcome could redefine the boundaries between competitive gaming and gambling in India.