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Online gaming policy formed with adequate checks and balances to reduce risks of harm: Rajeev Chandrasekhar
The winter session of the Parliament is underway. Lok Sabha MP Margani Bharat and MP Chinta Anuradha put forward a list of questions to Minister of State for IT, Rajeev Chandrasekhar concerning online real money gaming which were answered today. Speaking on the recent surge in popularity of
online real money games, the MPs asked if the government is aware of the situation which is leading to growing instances of operations of fraudulent applications and their illegal advertising. They also
Rajeev Chandrasekhar
asked if the latest amendments made by the government to the IT Rules, 2021 were able to achieve their intended motives. Responding to the queries, Chandrasekhar said
that the policies were formed with the intention to create an “open, safe, trusted and accountable” internet for all users. In order to minimize the risks to users, the Ministry of Electronics and IT (MeitY) was handed the responsibility to look after these matters back in 2022. “The policies created by the government for online
gaming are meant to safeguard or minimize the risk of harm to the users,” he added. Regarding the question of whether further
intervention is planned by the government in this matter, Chandrasekhar replied that the Ministry of
Information and Broadcasting has issued advisories to print and electronic media to refrain from showing adverts of illegal betting platforms in future. They also asked how the Union and state
governments can coordinate their efforts to protect people from getting duped by betting and gambling platforms and thus minimise the negative effects of them. “The Ministry has also issued an advisory to all
private satellite television channels on ‘Advertisements on Online Games, Fantasy Sports, etc.’, advising all broadcasters that the guidelines issued by the Advertising Standards Council of India be complied with and that the advertisements broadcast on television adhere to the same,” Chandrasekhar responded.
Online gaming GST issue serious and sensitive says ASG, SC lists A23, RummyCircle writs for further hearing on 8th January
A 3-judge bench of the Supreme Court comprising of Chief Justice of India DY Chandrachud and Justices JB Pardiwala and Manoj Misra issued notice on writ petitions filed by E-Gaming Federation, Head Digital Works Private Limited (operator of online rummy platform A23) and Play Games24x7 Private Limited (operator of My11Circle and RummyCircle) while refusing to
stay the showcause notices issued to online rummy companies or pass any interim directions. At the outset, N. Venkatraman, Additional Solicitor
General of India (ASG) submitted that the Finance Ministry took cognisance of a news article and asked him to appear today in the writ petitions, although no caveat was filed and an advance copy of the writ petition was not served. He submitted that the issue pertains to taxation on online gaming, and it is a fairly serious and sensitive matter. Harish Salve, Senior Counsel representing EGF
and the online rummy companies submitted that the matter has all India significance and showcause notices worth several times the companies’ turnover are being issued. He further submitted that if the notices fructify into demands, then the companies are looking at bankruptcy. He further prayed that assurance be given that the department keep their
26 JANUARY 2024
hands off and no action on the showcause notices be taken until further hearing. Referring to the Gameskraft matter where
the Supreme Court issued ad-interim stay on the Karnataka High Court judgment quashing the Rs. 21,000 crore showcause notice issued to the company, CJI Chandrachud remarked that adjudication on the GST issues pertaining to online gaming was pending before this court in a similar manner and no interim relief can be granted to the online gaming companies at this stage. The Supreme Court thereafter asked for copies
of the writ petitions to be served on the ASG and directed the matters to be tagged along with the Gameskraft matter and listed the matters for further hearing on 8th January 2024, after the winter vacations of the apex court.
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