The HC ruled in favour of gaming companies, saying that while the state has the authority to oversee online games, it cannot enforce a complete prohibition
The All India Gaming Federation (AIGF), Gameskraft, Games24x7, Junglee Rummy, and A23 were among the petitioners
The Tamil Nadu Prohibition of Online Gaming and Regulation of Online Games Act, 2022 categorised engaging in or providing games such as poker or rummy for real money as prosecutable offences
Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
The Madras High Court, on Thursday (November 09), overturned the Tamil Nadu government’s ban on online rummy and poker. The court said that while the ban can be applied for games of chance, it should not apply to rummy and poker, which are considered games of skill.
The verdict came in response to a legal challenge brought by numerous gaming companies before the Madras High Court (HC), contesting the Tamil Nadu Prohibition of Online Gaming and Regulation of Online Games Act, 2022.
The All India Gaming Federation (AIGF), Gameskraft, Games24x7, Junglee Rummy, and A23 were among the petitioners. They cited a Supreme Court judgement that recognises rummy as a game of skill to validate their appeal.
The HC ruled in favour of gaming companies, saying that while the state has the authority to oversee online games, it cannot enforce a complete prohibition.
The Tamil Nadu Prohibition of Online Gaming and Regulation of Online Games Act, 2022, which was notified in April last year, categorised engaging in or providing games such as poker or rummy for real money as prosecutable offences. In response, gaming companies contended that the Tamil Nadu government should only have the authority to regulate online games, rather than impose an outright ban.
Commenting on the court verdict, AIGF CEO Roland Landers said, “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 in relation to 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.”
The Tamil Nadu government had earlier told the Madras HC that addiction to online gaming was affecting the families and it was necessary to ban all forms of online games.
Online rummy and poker companies have immediately resumed offering services in Tamil Nadu, as per sources.
While the full copy of the judgement is awaited, the order is a reiteration of the well-established principle and several recent judgement by various HCs which said that games of skill, whether played online or offline and with stakes or otherwise, cannot be banned by states.
The Tamil Nadu government has the option to file an appeal in the Supreme Court against the HC’s judgement.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.