PIL against IT Rules on online gaming a Trojan Horse and proxy litigation: Central government to Delhi High Court

The Central government on Thursday questioned the maintainability of the plea filed by a Noida-based NGO challenging the recently introduced amendments to the Information Technology Rules on online gaming, stating that it was a 'Trojan Horse'..Additional Solicitor General (ASG) Chetan Sharma said that the Rules have been introduced pursuant to the orders of the Court and that the petition is a proxy litigation by people who do not want to comply with it. "Please see the writ petition and see the doublespeak...Your lordships must enquire who is the petitioner. These are companies who do not want to be amenable to the regulations, perhaps this individual is a front," the ASG submitted.He added that that the regulations have been formulated after consultations involving an inter-ministerial committee, the Chief Executive Officer (CEO) of NITI Aayog and the Cabinet Secretary. .The submissions were made before a Division Bench of Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula in response to a plea by an NGO named Social Organisation for Creating Humanity.The NGO has challenged the constitutional validity of regulations under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 insofar as they relate to online gaming. .Appearing for the NGO, Senior Advocate Ritin Rai clarified that the petitioner was in favour of regulation of online gaming. However, the reason he is asking for the Rules to be quashed is that only state governments have the power to regulate gaming and gambling activities.The Bench then pointed out that the Madras High Court had struck down the State's legislation on online gaming.Rai responded that those Rules were quashed because they prohibited all online real money games and did not distinguish between games of chance and games of skill.He added that Tamil Nadu has now come up with new legislation where a State authority has been set up to determine which games are of skill and which are a matter of chance..The Court asked the Central government for some details on the issue and listed the case for further consideration on September 21.ASG Sharma said that he will put the material on record..In its plea, the petitioner NGO has submitted that the Constitution of India gives state governments exclusive powers to legislate on the issues of betting and gambling. Therefore, the IT Amendment Rules are beyond the legislative competence of the Central government.The NGO has also expressed concerns over the appointment of Self-Regulatory Bodies (SRBs). The Central government had said that SRBs will verify whether online real money games are permissible under the Rules. However, the PIL stated that these SRBs would be financed by gaming companies that have a vested self-interest in the regulation of the community.This is wholly arbitrary, irrational, and violative of Article 14 of the Constitution, the plea contended.“The Government cannot abdicate its role of overseeing and monitoring of the online gaming sector and outsource its responsibility to private bodies,” the plea argued..Central government notifies online gaming rules; self-regulatory bodies to verify whether games involve wagering