Putting money on uncertain events amounts to wagering and the government's new rules bar online real money games that declare winners based on prediction of the unknown outcome, according to Additional Solicitor General N Venkataraman.
Amid attempts by certain industry players to masquerade wagering as a game of skills in the wake of the new rules issued under the Information Technology (IT) Act, the government's senior law officer said that some states are making a mistake in trying to distinguish between a game of skill and a game of chance in the context of wagering.
He also emphasised that the rules should be tested on the basis of the country's Constitution, statutory provisions and Supreme Court judgements.
"The new rules notified by the Centre is very clear. There is no ambiguity. Our courts have held that wagering is illegal, and any business predicated on wagering is res extra commercium that is a thing outside commerce. Such businesses cannot be carried on in India," Venkataraman told PTI on Tuesday.
In an interview, he pointed out that putting money on uncertain and unknown events amounts to wagering and the new rules bar online real money games that declare winners based on prediction or speculation of the unknown outcome.
The new rules mandate that all online games which involve an element of prize should be registered with Self Regulatory Organisations (SROs) that will have a mix of experts from various fields.
If any online game involves any element of wagering, then they would not be registered by the SROs and such games cannot be hosted on the Internet. Any kind of advertisement relating to such online games are also prohibited under the new rules.
According to Venkataraman, states are making a mistake
Read more on gadgets.ndtv.com