UP to draft online gaming law; committee to engage industry stakeholders

In a landmark decision addressing the legal vacuum surrounding online gambling, the Allahabad High Court has directed the Government of Uttar Pradesh to constitute a high-powered committee to formulate a comprehensive legislative framework for regulating online gaming and betting. The committee will also engage with stakeholders in the coming weeks to gather industry perspectives.

The directive was issued by Justice Vinod Diwakar while quashing a police chargesheet and summoning order against two individuals, Imran Khan and Irfan Khan, who were accused of running an online betting racket from their residence in Agra. The case was registered under the archaic Public Gambling Act of 1867.

During proceedings, the Court acknowledged that the existing law — a colonial-era statute — fails to address the realities of the digital age. "The Public Gambling Act, 1867, is a pre-digital law that has lost its relevance in the face of modern online gambling operations," the order noted. The Court cited examples from global jurisdictions, including the UK and the US, which have adopted more adaptive and responsive regulations for the digital gaming industry.

The High Court highlighted serious concerns related to digital gambling, such as addiction, youth distraction, financial losses, cybercrime, and the use of offshore servers that evade Indian jurisdiction. It observed that mere fines and short-term imprisonment do not act as deterrents for large-scale illegal operators.

“The Act makes no mention of digital platforms, servers, or cross-border transactions... Negligible penalties do not deter large-scale illegal operations,” the court observed.

Invoking its constitutional authority, the Court took suo motu cognizance of the legislative gap and directed the formation of a committee to address the issue comprehensively. The committee will be chaired by Professor K.V. Raju, Economic Advisor to the UP Government, and include the Principal Secretary (State Tax) as Member Secretary, along with domain experts.

“This court cannot turn a blind eye to the regulatory vacuum,” the order stated.

The committee is tasked with examining social, technological, financial, and legal aspects of online gaming and betting. Its findings are expected to pave the way for a robust, state-level regulatory regime that accounts for age restrictions, financial safeguards, jurisdictional enforcement, and digital platform accountability.

The court noted that, “Modern, technology-sensitive legislation is urgently needed to address the psychological, social, and national security implications of online gaming.”

The Registrar (Compliance) has been instructed to immediately forward the court's order to the Chief Secretary of Uttar Pradesh for necessary action.

A leading real money gaming operator said, "Uttar Pradesh being the largest state is a key market for Real Money Gaming operators. It is a positive development which will enable the government to distinguish between legitimate online gaming platforms and offshore gambling and betting platforms operating in the country."

An official from a gaming federation confirmed that the committee for gaming will meet multiple stakeholders to understand the nuances of the industry.

"The gaming committee officials have sought details regarding the operations of RMG platforms and we will be meeting the officials to discuss further details. The major talk points will include distinguishing games of skill and chance. Also, developing a framework for safe and responsible gaming charter for the industry." With the committee’s engagement process underway, industry experts are hopeful the move will result in modern, enforceable legislation that protects consumers while promoting innovation and accountability in India’s booming online gaming ecosystem.