The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023, have come at a time when the online gaming industry in India is evolving rapidly at breakneck speeds. The amendment rules aim to oversee the realm of online gaming through a mechanism of self-regulation. This would be achieved by imposing responsibilities of thorough diligence on a fresh category of intermediaries in the online gaming domain and instituting an entity known as the Online Gaming Self-Regulatory Body. While the amended rules present a general enhancement compared to the earlier Proposed Amendment of 2023, as it stands today the Amendment Rules 2023 are plagued with enigmatic definitions and an imperfect self-regulatory framework. The unfolding impact of these new rules on the expeditiously evolving industry, where the distinction between ‘games of skill’ and ‘games of chance’ is gradually blurring, remains uncertain and will only be revealed over time.
Recently the Supreme Court was hearing a Special Leave Petition in the matter of State of Andhra Pradesh v. Play Games 24 And 7 Private Limited, SLP (C) No. 19057-19059/2023 filed by the State of Andhra Pradesh challenging an interim order passed by the Andhra Pradesh High Court, Amravati Bench by way of which, the High Court directed the State to submit a report pertaining to the manner in which Online Rummy is played. The High Court framed five issues for consideration however whilst doing so, the High Court recorded a finding on merits on the primary issue which was whether rummy qualifies as a ‘game of skill’ or a ‘game of chance.’ The High Court held that if online rummy is deemed a game of skill, it cannot be prohibited under the Andhra Pradesh Gaming Act, 1974. This was the finding in the impugned order by which the State Government was aggrieved in the said Special Leave Petition.
During the course of the hearing before the Supreme Court, it was contended that the Information and Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 have been notified pursuant to the passing of the said impugned order. The Supreme Court in view of the amendment rules, directed the Andhra Pradesh High Court to look into all the issues in the said matter afresh, uninfluenced by its own findings recorded in the impugned order whilst taking note of the amended rules viz Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023.