Taking action against the recent ordinance issued by the Tamil Nadu government to ban online gaming, the E-gaming Federation (EGF) is set to challenge the ordinance citing that it categorises rummy and poker as games of chance. The EGF is a not-for-profit organisation, founded to protect consumer interests and self-regulate the Indian e-gaming sector.

‘Game of skill’

Rummy has been settled predominantly as a game of skill by the Supreme Court and held to be protected under Article 19(1)(g) of the Indian Constitution. Bringing rummy under the ambit of a game of chance is directly in violation of the Supreme Court and the Madras High Court’s judgements which overturned the law banning online games including rummy and poker, says a release from EGF.

Reaffirming the preponderance test for distinguishing between games of skill and games of chance, especially in the context of rummy and poker, the Madras High Court held that wherever the better skilled would prevail more than not, is a game of skill, reinforcing that both rummy and poker are games of skill, distinct from gambling, a game of chance. In its detailed judgement in August 2021, the High Court held that when it comes to card games such as rummy and poker, there is no distinction between skill involved in physical form or in virtual/online form.

Constitutionally protected

The Karnataka High Court overturned the provisions of the Karnataka Police (Amendment) Act, 2021 in February 2022 and stated that games of skill do not metamorphosise into ‘betting or gambling’ irrespective of whether they are played for stakes or simply because they are played online and are therefore constitutionally protected activities. Moreover, looking into the legality of the specific skill-based games, all High Courts and Supreme Court judgments, on different occasions, have ruled in favour of the industry.

Sameer Barde, CEO of EGF said, “After examining the ordinance, we have decided to file a lawsuit as it categorises Rummy & Poker as games of chance. This is in dissonance with multiple legal judicial pronouncements including the recent judgement by the Madras High Court, which has clearly segregated games of skill and chance. The Supreme Court and several High Courts have reaffirmed the status of skill-based games as legitimate business activity and the state must take cognisance of these judgments in developing an enabling gaming policy that safeguards players than resorting to a ban.”

Need of the hour

The Indian gaming market is expected to grow from current $2.2 billion to $5 billion in revenue by 2025. Growing at an impressive CAGR of 38 per cent, the sector holds significant potential for overall economic growth and employment opportunities. The Centre has set up an inter-ministerial task force and consultations have been held with all stakeholders on regulating the online gaming industry.

For the online skill gaming industry and for Tamil Nadu, the need of the hour is a comprehensive online gaming policy that protects players and ensures that only legitimate online skill-gaming operators offer their services while weeding out the ones who break the law, the release said.

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