If you are stuck in such a situation, here is what to do.

Mr. Sameer Verma, a resident of the city of Alipur, is an enthusiastic player on a popular online fantasy sports platform called “League Legends Pro.” Recently, he came across news that a new ‘Digital Gaming Regulation Bill’ has been approved by the Lok Sabha. This development has left him with several pressing questions and a sense of uncertainty. He is concerned about the legislative process and how long it might take for this bill to become a binding law. More importantly, he wonders about the effective date of any potential ban—would it be retroactive or apply from a future date? His primary worry is the legality of any winnings he might accumulate between now and the final implementation of the law. He is in a dilemma whether he should cease all activity on the app immediately or if it is legally permissible to continue playing and transacting until an official notification is published in the Gazette.

Advice in such cases

When faced with legal uncertainty due to new or proposed legislation concerning online activities, it is crucial to act with caution and stay informed. Here is some general advice:

• Stay updated through credible news sources and official government websites for any announcements regarding the bill’s progress and final notification.
• Understand the distinction the law makes between a “game of skill” and a “game of chance.” Historically, fantasy sports have been considered games of skill by courts, but a new law could change this classification.
• Review the terms and conditions of the gaming app you are using. Companies often update these in response to legal changes.
• Avoid making large deposits or leaving significant winnings in the app wallet until there is clarity on the new law.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

The legal framework for online gaming in India is complex and evolving. Currently, it is governed by a mix of central and state laws:

• Constitution of India: “Betting and gambling” is a state subject (Entry 34 of List II), allowing individual states to formulate their own laws. This is why some states have banned online gaming for stakes while others permit it.
• The Public Gambling Act, 1867: This is a central pre-independence law, but its applicability to online gaming is debated. It primarily targets “games of chance.”
• Supreme Court Precedents: The Supreme Court of India has consistently held that competitions where success depends on a substantial degree of skill are not considered gambling. This “game of skill” exception is the legal foundation upon which most fantasy sports platforms operate.
• Information Technology Act, 2000: This Act, along with the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, regulates online platforms and intermediaries. Recent amendments have introduced a framework for regulating online gaming, requiring companies to register with self-regulatory bodies.
• A New Central Law: A new bill, like the hypothetical ‘Digital Gaming Regulation Bill’, would aim to create a uniform regulatory framework across the country, potentially overriding the patchwork of state laws and providing clear definitions and rules for the sector.

If you are the complainant

If you believe an online gaming platform has acted illegally, for instance, by withholding your legitimate winnings or engaging in fraudulent practices, you can take action as a complainant.

• Gather all relevant evidence, such as transaction histories, screenshots of your winnings, and copies of your communications with the company’s customer support.
• File a formal complaint with the platform, clearly stating your grievance and the resolution you seek.
• If the issue is not resolved, you can file a complaint with the National Cyber Crime Reporting Portal or approach the cyber cell of your local police.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

If you find yourself adversely affected by a sudden change in law or a platform’s policy, such as your account being blocked or winnings being frozen, you are considered a victim.

• Immediately take screenshots and document the status of your account and any pending funds.
• Contact the platform’s customer service through official channels to seek a clear explanation and resolution.
• Keep a detailed record of all correspondence, including dates, times, and the content of the communication.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

Police intervention in online gaming matters typically occurs when a specific complaint is filed or if a particular app is found to be in direct violation of a state’s gambling laws. If a state has explicitly banned online games involving money, the police can register a First Information Report (FIR) and investigate. The investigation would involve collecting digital evidence from the platform and the user. Under the Bharatiya Nagarik Suraksha Sanhita (BNSS), the police are required to conduct a thorough and timely investigation. However, in cases involving new or ambiguous laws, police action may be cautious until clear legal directives are established.

FAQs people normally have

How long does it take for a bill to become law?

After a bill is passed in one house of Parliament (e.g., Lok Sabha), it must be passed by the other house (Rajya Sabha). Once both houses approve it, it goes to the President of India for assent. After receiving presidential assent, it is officially notified in the Gazette of India, at which point it becomes an Act of law. This entire process can take anywhere from a few weeks to several months, depending on the parliamentary schedule and the complexity of the bill.

When will a ban or new regulation become effective?

The Act itself will specify its commencement date. It could be effective immediately upon notification in the Gazette, or on a future date specified within the Act. Such regulatory laws are typically not applied retrospectively, meaning they do not penalize actions that were legal before the law came into effect.

Will winnings earned before the new law is implemented be legal?

Yes, as a general principle of law, any activity that was legal at the time it was conducted remains so. Therefore, winnings earned and withdrawn before the new law’s effective date should be considered legal. These earnings would, however, be subject to applicable taxes, such as Tax Deducted at Source (TDS) under the Income Tax Act.

Should I stop using the app immediately?

This is a matter of personal prudence. Until a new law is officially notified and made effective, the existing legal framework applies. However, given the legislative changes, exercising caution by limiting financial exposure on these platforms is a wise approach.

What evidence is required?

If you need to prove your case, either against a platform or in a legal proceeding, the following evidence is crucial:

• Digital records of all transactions made on the app (deposits and withdrawals).
• Bank account statements reflecting these transactions.
• Screenshots of your user profile, contest participation, and winnings.
• All email and chat communication with the platform’s customer support.
• A copy of the terms of service that were in effect when you were playing.

How long will the investigation take?

The duration of a police investigation or legal proceeding can vary significantly. For a police case, the Bharatiya Nagarik Suraksha Sanhita (BNSS) sets out timelines for completing investigations. However, cases involving digital evidence and multiple jurisdictions can be complex and may take several months. Civil disputes, if pursued through consumer forums or courts, also have their own procedural timelines and can be a lengthy process.

Advocate Sudhir Rao, Supreme Court of India