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The real money online gaming industry welcomed the Madras High Court order to strike down the law banning online real money games like rummy and poker for the second time. This comes at a time when the debate on the constitutionality of online gaming continues in courts and several States.
The Madras High Court refused to entirely strike down the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022. However, it did rule that the law will not apply to skill-based games such as online rummy and poker, providing a relief to online money gaming operators.
Validation for online skill gaming
The All India Gaming Federation, Gameskraft, Games24x7, Junglee Rummy and A23 were among the petitioners who argued that while the game is legally permissible when played physically, it becomes illegal when played online.
“By reiterating that online rummy and online poker are games of skill, this decision by the Madras High Court is yet another validation of what the online skill gaming industry has always maintained about online skill games being a legitimate business activity protected under the Constitution of India. This also adds to a long line of judgments from the Supreme Court, Karnataka, Kerala and Madras High Courts upholding the legitimacy of such games,” said Roland Landers, CEO, All India Gaming Federation.
AIGF has over 100 members including skill-gaming companies and game developers across all formats and genres. Among its prominent members include Nazara Technologies, Gameskraft, Mobile Premier League (MPL), Deltatech Gaming, Head Digital Works (A23) and WinZO.
In August 2021, the High Court held that online gaming ban provisions brought in as amendments to the Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021 by the AIDMK government as unconstitutional and violative of the fundamental right to practice a profession, occupation or trade under Article 19 (1)(g) of the Constitution. The appeal in this matter is what is currently pending before the SC along with another from the Karnataka government.
“The verdict today holding online rummy and poker as games of skill validated the legitimacy of the online skill gaming industry,” said Anuraag Saxena, CEO, E-Gaming Federation.
Indian judiciary has struck down provisions seeking blanket prohibitions on skill gaming as ultra vires (acting or done beyond one’s legal power or authority) in the Constitution.
“A forward-looking policy has the potential to drive and support the growth of this emerging sector. Central as well as state governments have realised the sector’s potential as an employment and revenue generator and this decision will further investor confidence, encourage and foster innovation,” he added.
This judgment however comes amid a turbulent time for the real-money gaming industry that is navigating through the government’s new 28 percent goods and services tax (GST) regime which became effective on October 1.
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