NGO challenging the constitutional and legislative validity of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 in relation to online gaming. It went on to state that the Rules are beyond the legislative competence of the Union Government as the Constitution gives exclusive powers to states to legislate on ‘gambling and betting’.
It said the Central Government’s enactment of rules has led to 'regulatory confusion' and dual set of laws relating to online gaming and said that presently there is no clarity on whether central or state laws should be followed with respect to online gaming. Further, it raised concerns over the government's move to establish Self Regulatory Bodies (SRBs).Also read | Online gaming companies plan to talk rules with states «The Rules outsource regulatory powers of the State to SRBs, which would be financed by online gaming companies with a vested self-interest in the regulation of the community, is wholly irrational, arbitrary and violative of Article 14 of the Constitution.
The Government cannot abdicate its role of overseeing and monitoring of the online gaming sector and outsource its responsibility to private bodies,» the NGO stated in its petition which was filed on July 1 and has been reviewed by ET. The NGO claimed that the Rules seek to create a framework for regulating online gaming, including online real money games by classifying them as ‘intermediaries’ under the IT Act, 2000 and imposing several due diligence requirements and compliances.
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