'Colonial-Era Gambling Law Inadequate for Digital Age': Allahabad HC Directs UP Govt to Form Committee for Reforms

In a significant judgment, the Allahabad High Court has quashed the chargesheet and summoning order against two Agra residents accused of running an online betting racket, citing procedural lapses and calling for immediate legislative reforms in India’s gambling laws.

The bench of Justice Vinod Diwakar, while deciding the petition filed by Imran Khan and Irfan Khan, observed that the police investigation conducted against them was in violation of Section 155(2) of the CrPC, which mandates prior magistrate approval for probing non-cognizable offences. The case was registered under Sections 3 and 4 of the Public Gambling Act, 1867—a colonial-era law—after a police raid on their residence based on a tip-off.

The accused had allegedly fled the scene during the raid, dropping a Samsung tablet purportedly used for online gambling. Despite this, the court found the legal procedure adopted by the police to be flawed, rendering the investigation and resulting chargesheet “vitiated in law.”

“The Public Gambling Act is a pre-digital law. It makes no mention of digital platforms, servers, or cross-border transactions. Its enforcement is limited to physical gambling houses and has no jurisdiction over virtual gambling environments accessed via mobile phones, computers, or offshore servers,” the court noted, underscoring how outdated the law has become in the face of sophisticated and borderless online betting operations.

The State had argued that the procedural lapse should be overlooked due to the applicants’ serious criminal history and the gravity of their alleged crimes. However, the court held that even habitual offenders cannot be prosecuted on the basis of an illegal investigation.

Taking suo motu cognizance of the broader issue, the high court highlighted the psychological, financial and national security threats posed by unregulated digital betting. The court said that modern legislation is “urgently needed” and must include platform accountability, age and financial controls, and safeguards against cybercrime and addiction.

The judgment also pointed to international best practices—from the UK Gambling Act of 2005 to regulatory models in Australia, Singapore, and U.S. states like New Jersey—as potential reference points for India’s legislative reforms.

“This Court ensures that justice is not defeated due to mere procedural lapses,” the order stated. However, it also emphasized that in the digital era, justice demands relevant, enforceable, and modern laws.

Therefore, exercising its writ jurisdiction and the authority vested in the high court, the single judge bench dire'cted the Uttar Pradesh government to constitute a High-Powered Committee led by economist Prof. K.V. Raju to examine the legal and regulatory framework governing online betting and gaming in the state.

The Committee may include the Principal Secretary, State Tax as Member Secretary, besides other experts as Members, court added. 

It ordered that their collective input should be used to develop a comprehensive and well-structured legislative framework for regulating and monitoring online gaming and public betting.

The Registrar has been directed to forward a copy of the order to the Chief Secretary of Uttar Pradesh for compliance.

Case Title: Imran Khan And Another Vs State of UP and Another