Unstoppable Force? Centre Declares Courts Powerless to Halt Online Gaming Act After Presidential Nod

The Central government has delivered a resounding message to the Karnataka High Court, asserting that once an Act receives the President's assent, its operation cannot be stayed or halted by judicial order. This powerful contention emerged during the ongoing hearings of petitions challenging the newly enacted Online Gaming (Regulation) Act, 2023.

In a significant submission before the division bench, the Centre underscored the constitutional principle that a law, once it has passed through both Houses of Parliament and secured the President's approval, immediately takes effect.

While courts retain the power to examine the constitutional validity of such a law, they are explicitly prevented from issuing interim orders that would prevent its enforcement or stay its operation.

The government's argument is rooted in well-established legal precedents, including a pivotal Supreme Court judgment (e.g., Bhavesh Jayanti Lakhani v.

State of Maharashtra, 2009). This judgment, among others, fortifies the principle that the presumption of constitutionality for a law is considerably strengthened after it receives Presidential assent, making any interim stay orders against its implementation highly problematic.

This firm stance by the Centre is a critical development in the legal challenges mounted against the Online Gaming Act.

Various online gaming companies, industry bodies like the All India Gaming Federation (AIGF), and individuals have approached the High Court, questioning the Act's provisions. Their petitions argue that certain aspects of the law are unconstitutional, excessively restrictive, or fall outside the legislative competence of the government.

The Online Gaming (Regulation) Act aims to bring much-needed structure and oversight to India's burgeoning online gaming sector.

However, its implementation has been met with concerns from industry stakeholders who fear it could stifle innovation and growth. The Centre's current argument effectively means that even as the High Court deliberates on the validity of the Act, its provisions remain in force unless and until it is definitively struck down.

The outcome of these hearings in the Karnataka High Court will have far-reaching implications for the future of online gaming in India, defining not only the regulatory landscape but also the precise boundaries of judicial intervention in legislative processes post-enactment.

The Centre's assertive position signals a strong commitment to the immediate enforcement of the new gaming regulations.