Will Take Steps To Constitute Authority, Frame Rules Under New Online Gaming Act: Centre To Delhi High Court

The Central Government on Tuesday informed the Delhi High Court that steps shall be taken to constitute the authority as well as frame Rules and Regulations under the newly passed Promotion and Regulation of Online Gaming Act, 2025.

SGI Tushar Mehta made the submission before a division bench comprising Chief Justice DK Upadhyaya and Justice Tushar Rao Gedela.

Mehta said that once a notification in terms of Section 1(3) under the Act, which is under contemplation, is issued, steps shall be taken to constitute the authority and to frame the requisite Rules.

The Court was hearing a plea filed by Bagheera Carrom (OPC) Pvt. Ltd, a company which has developed carrom as e-sports by the name of “Bagheera Carrom”, challenging the constitutional validity of the enactment.

The petitioner company is represented through Advocates Harsh Jaiswal and Aadya Mishra.

During the hearing, it was submitted by the petitioner that the entire Act has been challenged on grounds of manifest arbitrariness and vagueness.

The Court was told that apart from challenging the vires of the Act, the plea, in the alternative, seeks reading down of prohibition laid under Section 5, the definitions of “online money game” under Section 2(1)(g) and “e-sports” under Section 2(1)(c) of the Act.

CJ orally remarked that the government will be constituting an authority under the Act, adding that rules and regulations will have to be framed to work the law. They must be in process, the judge said.

After petitioner counsel said that action might be taken against it under the Act, Justice Gedela asked if an enactment can be challenged on the basis of presumption.

On this, SGI Mehta told Court that while the Act has received assent of the President, it has not been notified as required.

To this, the Court remarked:

“Unless a notification is issued, this Act cannot come into being. Your apprehension that you will be prosecuted is not live as of today. We expect the government to frame Rules. There cannot be assumption that they won't constitute the authority. They may constitute the authority also. We are yet to wait.”

“Is there any notification? How are you going to be prosecuted…?” CJ added.

The Court told SGI that for working the Act, the government needs to constitute the authority and that the rules and regulations also need to be promulgated.

The SGI then responded that the government is in the process of taking steps to frame Rules and constituting an authority is under contemplation.

“We are in the process of framing Rules and contemplating constituting the authority also. The government is promoting online gaming. We are not against it. But online money gaming results in addiction in children, suicides etc,” Mehta said.

To this, CJ said: “Suppose esport is permissible, someone wants to create online platform promoting e-sport. Whether whatever he contemplates to do for launching that is to be determined by the authority under the Act. Unless you constitute the authority and also promulgate rules and regulations, you won't be able to work on the Act.”

“There may be apprehensions which may be ironed out after the Rules are framed. That is quite possible. And it is most likely to happen if the government acts,” the CJ said.

The matter will now be listed after eight weeks.