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In most states, since it is difficult for a traditional police force to effectively act against online platforms if they do not have a physical place of business in a particular state, states are looking for ways to block such websites (see question 3.1 above). In other words, though there is appetite for enforcement, there are practical challenges to enforcement. There has been a spate of PILs recently that seek directions from courts to instruct the state governments to act against online gaming. Thus, even if the local authorities had no appetite for enforcement, such litigations force them to act. In October 2022, the CCPA issued notices to six offshore betting and gambling websites that were advertising themselves through surrogate advertisements. 5. Anticipated Reforms. 5.1 What (if any) intended changes to the gambling law/regulations are being discussed currently? This is a time of great flux for gaming law in India. With increasing penetration of cheap and high-speed mobile data and affordable smartphones, the gaming industry is seeing unprecedented growth. This has prompted governments to consider newer and stricter regulations and even blanket bans. A spate of litigations in courts have seen courts prod state governments to bring in compatible legislation for the evolving landscape of gaming in India. Upcoming Laws and Amendments, ब्लैक लेबल कैसीनो. The central government is reportedly considering enacting a uniform law for online gaming and gambling throughout the country and to that end, the central government has constituted an inter-ministerial committee to recommend a central (federal) law for online gaming and to identify a central ministry to oversee it. The terms of reference of the committee include studying global best practices, considering ease-of-doing business for skill gaming companies as well other auxiliary issues such as compliance, need for a level playing field, protection of gamers from user harms such as addiction, etc. As per news reports, a draft internal report has been prepared and the same is under discussion within the government. The Rajasthan Bill is proposing to regulate online fantasy sports and esports as Virtual Online Sports under a licensing regime in the state. The bill has envisaged a state government-led gaming commission and an industry-led self-regulatory organisation (“ SRO ”) to operationalise provisions of the proposed law. The gaming commission shall, inter alia , recognise the SROs representing the respective Virtual Online Sport as well as their code of ethics, charters and bylaws. The SROs shall administer the management of such Virtual Online Sport, and evaluate and certify a format as a Virtual Online Sport in accordance with the conditions mentioned in the Rajasthan Bill. As mentioned above, the state of Tamil Nadu introduced a new gaming law, the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Ordinance, 2022 in October 2022. Shortly thereafter, the state government also introduced a bill to replace the TN Ordinance and the same has been passed by the State Legislature and will be notified soon. The new law is expected to have identical provisions as the TN Ordinance. India’s most populous state, Uttar Pradesh , is considering either amending or repealing its colonial-era gaming statute. The State Law Commission has made recommendations with regard to this and even formulated a draft bill. Whether the state government will adopt the draft bill or formulate a new set of regulations, if at all any, is not yet clear. As per news reports, Madhya Pradesh may have a new law in place or, in any event, at least take a stance in the court on online gaming and gambling in the matter of a PIL filed in the regional High Court. In a separate matter, the Madhya Pradesh High Court in September 2022 directed the state government to take concrete steps with regard to online gaming in the state and submit a report before the Madhya Pradesh High Court within the next three months. The state government of Meghalaya recently announced that it will soon repeal the Meghalaya Act owing to opposition from political parties and socio-religious groups. The said Meghalaya Act was one of the few contemporary gaming/gambling laws in the country and had legalised betting and gambling in Meghalaya under a licensing regime. In September 2022, the Chief Minister of the state of Kerala , speaking on the floor of the State Legislative Assembly, said that the government is considering a comprehensive amendment to the Kerala Gaming Act, 1960 to strictly regulate online gaming in the state, particularly rummy. In the Union Territory of Puducherry , the main opposition party recently demanded that the territorial administration promulgate an ordinance on the lines of the TN Ordinance to prohibit online gambling in the state. Chhattisgarh Chief Minister Bhupesh Baghel reportedly directed the State Director General of Police to take stern measures to curb betting and gambling from being offered through online platforms to users in the state and to also prepare a draft of legal provisions and procedures to help enact a stringent law. Goa Chief Minister Ashok Sawant recently promised to “take action” against online real-money gaming operators in response to an issue raised by a Member of Legislative Assembly (“ MLA ”) during a session of the State Legislative Assembly. The MLA stated that young people are getting addicted and losing their money to online games like rummy and poker. An empowered Group of Ministers (“ GoM ”), which was constituted in 2021 by the central government to review and advise the Goods and Service Tax Council (“ GST Council ”) in respect of the tax rate and valuation basis of GST for the online gaming sector, casinos and horse racing, etc., has reportedly unanimously agreed to increase the GST tax rate from the current 18% to the highest slab of 28% for all kinds of online games (irrespective of skill or chance). It also appears that the new rate has been recommended to be levied on the “bet value”, irrespective of the nature of the game. The GST Council is likely to meet next in mid-November to take a final call on this recommendation. Pending Litigation. The state of Tamil Nadu ’s appeal to the Supreme Court against the state High Court’s judgment that had quashed the blanket ban on games played for stakes in the state is pending at the preliminary stage. The state of Karnataka has also filed an appeal before the Supreme Court against the Karnataka High Court judgment that had struck down substantial portions of amendments brought to the state Gaming Law. The amendments had sought to prohibit all forms of online gaming when played for stakes, agnostic of the games being of skill or chance. The appeals filed by Tamil Nadu and Karnataka have now been clubbed by the Supreme Court and will be next heard together in mid-November 2022 (tentatively). The state government of Kerala has filed an appeal against a September 2021 judgment of a single judge of the High Court of Kerala. The said judgment had quashed a state government notification seeking to ban online rummy for stakes. The matter is pending at the preliminary stage and is listed for hearing in November 2022. A writ petition has been filed in the Orissa High Court against the Odisha Prevention of Gambling Act, 1955 (“ Odisha Act ”). The petitioners are online skill gaming operators who contend that the Odisha Act prohibits all forms of gaming including skill games and is therefore unconstitutional and against established judicial precedents. The matter is yet to come up for preliminary hearing before the Orissa High Court. The issue of whether sports betting is a game of skill or not is pending before the Supreme Court in the Sports Betting Case. The petitioner has impleaded the central government and all state governments as respondents, seeking legalisation and regularisation of sports betting. However, no next date has been assigned yet since the last hearing in October 2019. If the Supreme Court holds sports betting to be a game of skill, then it would become legal in those states where skill games continue to be exempted from gambling prohibitions under the Gaming Laws. Legal challenges to the amendments to the Telangana Act and the Andhra Pradesh Act are pending before the respective High Courts in the states. Rummy and poker operators along with certain skill gaming industry bodies are expected to challenge the constitutional validity of the TN Ordinance in the Madras High Court.

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