Delhi High Court Urges Centre to Form Authority, Frame Rules for New Gaming Law

In order for the recently passed Promotion and Regulation of Online Gaming Act to be effective, the Delhi High Court ordered the Centre on 2 September to establish an authority and publish the regulations. On a suit contesting the new online gaming law, a bench consisting of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela issued the rulings.

The Act, which was approved by Parliament on August 21, encourages e-sports in addition to “safe online social and educational games” and outlaws all types of online money games.

The judges pointed out that the Centre had not yet established a body to supervise the law’s application. “Until you constitute the authority and promulgate the rules, you will not be able to work on the act,” the court stated. After eight weeks, the matter was scheduled for hearing.

Sharing his views on the development, Kamal Karanth, Co-Founder Xpheno- A specialist Staffing Firm stated, “While the focus and buzz has been on real money gaming (RMG), it is important to note that most gaming enterprises operate across three verticals—RMG, social gaming, and eSports. The skills and talent deployed across these lines are highly adjacent and transferable. This adjacency provides a talent agility which has helped the sector remain resilient despite regulatory uncertainties.”

“Gaming tech skills—ranging from AR/VR and app development to AI and immersive design—are not just central to gaming but are also critical to emerging sectors like fintech, edtech, and healthtech. The potential is hence high for redeployment and absorption of talent within the enterprise or within gaming and other adjacent sectors,” he added.

Argument in the Court

The government is now establishing an authority under the Act, according to Solicitor General Tushar Mehta, who spoke on behalf of the Centre during a brief session. According to him, the Central Government is now creating regulations and establishing its authority. Although online gaming is encouraged by the government, youngsters who play for real money become addicted and commit suicide.

The online carrom game platform Bagheera Carrom (OPC) Private Limited filed the petition, arguing that the new law was enacted in excessive haste and without adequate stakeholder participation, violating fundamental rights. The new rule, according to the petition, indiscriminately prohibits all online real-money games, regardless of whether they are skill-based or chance-based.

Already, Many Players Shutting Real Money Gaming From System

Shortly after the Indian government’s online gaming bill was approved by both Houses of Parliament, India’s leading real money gaming (RMG) companies, including Dream11 parent company Dream Sports, Gameskraft, Mobile Premier League (MPL), Zupee, and Nazara-backed PokerBaazi, started to stop holding money-related competitions and games on their platforms.

The measure forbids online money games, which are those in which players deposit money either directly or indirectly in the hopes of winning.

All ‘Pay to Play’ competitions on Dream Picks, a newly released fantasy sports app that allows users to create four-player teams and compete in both innings, have been suspended by Dream Sports. Additionally, Dream Play, the company’s casual RMG app, is being discontinued.

Wave of Layoffs in the Indian Online Gaming Sector

The Mobile Premier League (MPL), one of the largest gaming businesses in India, has announced significant employment layoffs as a result of the country’s decision to ban paid online games. Reuters reports that the Bengaluru-based startup will lay off roughly 300 employees, or 60% of its India workforce, because the new rule eliminates revenue from its primary fantasy and card gaming business.

Moonshine Technology, which was supported by Nazara Technologies and ran PokerBaazi, began firing its staff. According to sources who spoke to several media sites, the business has begun to lay off workers, with up to 50% of its personnel potentially affected.