Apple needs concrete reasons to take down betting apps from App Store

Apple has told Indian authorities that it will only take down online betting apps from its App Store if there is a "concrete reason or a legal requirement" to do the same, according to a report by Economic Times.

Apple, however, has not directly refused to comply with the order issued by the ministry of electronics and information technology, but has clarified that it cannot remove betting apps 'arbitrarily' from its platform.

People aware of the matter have told the publication that the iPhone-maker "has been asked to look into other ways the order can be implemented". They also said that the company contended that since these apps are valid and legal in other geographies, it would be difficult for (Apple) to bar them outright in India.”

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A meeting was held between India's IT officials and Apple's executives in March after the MeitY listed out names of 138 betting and gaming apps that have been disallowed from continuing to operate in the country.

Options for Apple

Despite apps like BetNetix, Bet Analytix, and Betway being declared as banned by the government, ET informed that they continue to be available on Apple's App Store. However, Google has removed them from the Google Play Store.

Apple has claimed that Betway has been removed from its India storefront in accordance with the ministry's notice. The company revealed that it has asked the ministry to provide it with app identification numbers of other apps that they have been directed to remove in order to ensure accuracy before they go ahead with the move while complying with local laws.

The publication spoke to people aware of the matter, who said that Apple's processes were in place to comply with the ministry's order. However, the company is "vetting apps" in order to ensure “only the wrong or bad players of the ecosystem” are removed from its platform.

Sources close to the matter told the publication that the company has taken down some of the apps banned by the government in February, and is now working on the "best possible solution" for the other apps in the list.

The source further said that the company now has three options: tell the ministry that it will not be possible for them to take down the apps in question and provide reasons for the same; take the matter to court just like Twitter had done; or to simply comply.

However, there isn't any reason for the company to not comply with the ministry's order for months, ET's sources stated.

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The apps that have been asked to be taken down were apparently violating Section 69A of the IT Act. While taking out the list of apps that should be taken down, officials were of the opinion that these applications were posing as a threat to India's sovereignty.

Legal experts have claimed that the wording of this particular section may have provided the Cupertino-based company with a loophole.

“The wording of Section 69A of the IT Act is broad and uses terms like public order, security of the state and sovereignty of the country and so on which doesn't necessarily cover gambling and betting,” a technology and gaming lawyer told told ET.

He further added, “In 2010, CERT-In did not accede to Maharashtra government's request to block betting website Betfair stating that they could not take down some content because it was not violating the clauses of Section 69A. So, it is possible that Apple too made a case along these lines.”

The Centre had passed a new amendment to the IT Rules in April 2023 in order to ensure the protection of gamers from addiction and harmful content. This amendment banned games that involved betting with actual money.

After the amendments were made, the ministry again asked the iPhone-maker to make that that no app involving betting or wagering is available on the App Store.

IT minister Rajeev Chandrasekhar has said that self-regulatory organisations (SROs) will be set up to approve games that are in synch with the country's rules of operation.

Conflict in rules

The publication spoke to a legal expert who said that he "understands Apple's confusion", which according to him is a "two-fold" one.

The IT Rules 2023, released in April, states that the ministry has given the power to SRBs and SROs to approve online games.

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The fact that SROs/SRBs are still to be constituted and recognised by MeitY, could be the reason why it could be considered that the trigger has been pulled a little too soon, when it comes to banning these apps," he said.

Moreover, he also noted that “betting and gambling is a state subject and while the Centre has come out with overarching guidelines for the online space, the power to classify whether an activity falls within the remit of betting and gambling in compliance with judicial precedent lies with the states."

Apple, on the App Store review guidelines on their website, has said that gambling, lotteries, and gaming can become difficult to manage, and thus they are some of the most regulated products on its App Store. The company also warns developers to go ahead with such functionalities only after they have "fully vetted" their legal commitments.