The Tussle Between the Centre And The States for Regulation of Online Games In India

Abstract

This article focuses on the power struggle between the Center and the States in the realm of regulation of online games. States have time and again contended and argued before the courts that games involving real money are to be considered as only “games of chance” and, therefore, the power to regulate them falls within Entry 34 of the state list—“betting and gambling.” However, the Indian Courts have categorically stated that all online games involving real money cannot be considered games of chance, and hence the states cannot put a blanket ban on the same. Despite this position adopted by the Supreme Court, the states have continued to frame legislations that overlook the distinction between games of chance and games of skill and impose a blanket ban on the two by placing such regulatory power under entry 34 of the State List. Through this article, the authors argue how such a blanket ban placed by the state on online games involving real money is not only against the position taken by the Supreme Court but also against the constitutional mandate. Additionally, the authors try to counter other possible entries under the State List that can be used by the States for constitutional authorization for the regulation of online games. While limiting the regulatory power of the states, the authors also put forth an argument that regulation of online games is not in the exclusive domain of the states but is shared with an overarching regulatory power lying with the Center. Finally, the authors look at the policy aspect as to why the regulation of the gaming industry should primarily vest with the Center, with state laws being in line with the Central legislation.