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Madras HC Quashes Law Banning Online Rummy And Poker

In the latest development regarding the ban on online real money games, Madras High Court (HC) has once again quashed the law banning online real money games like online rummy and poker. 

In August 2021, the Madras HC upheld that provisions brought in to ban online real money games were unconstitutional and violated the fundamental right to practice a profession, occupation or trade under Article 19 (1)(g) of the Constitution. 

Previously, amendments were made to the Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021 by AIDMK government. 

An appeal was reportedly made before the Supreme Court which is currently pending has been clubbed with a similar appeal from the Karnataka state government. 

The Tamil Nadu state government headed by the DMK party proceeded with another law after a public consultation with the Justice Chandru committee. 

This second law was presented in the form of an ordinance and then enacted as an act via the legislative assembly. During the hearing of the present case in Madras HC, the petitioning online gaming brands informed the court that they could not conduct business due to the current regulations and were forced to close down.

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The latest update will surely offer some respite to the online real money gaming which is also facing an uphill task of dealing with the recently imposed 28% Goods and Services Tax (GST). This implementation of the GST was a tough blow to the industry as many firms were already facing notices from the GST authorities over tax demands. 

Online gaming brands facing tax notices have taken the legal route challenging these tax slaps by the authorities as the 28% GST law came into effect from 1st October 2023. 

Now, the Madras HC consisting of a bench of Chief Justice SV Gangapurwala and Justice PD Audikesavalu, mentioned clearly that the state government could make rules to restrict the amount of time spent on online games or set age limits on games of chance and games of skill. 

Further adding that the state government can ban games of chance only and cannot ban games of skill like poker or rummy.

All India Gaming Federation CEO Roland Landers Responds

Roland Landers, CEO, All India Gaming Federation, said on the Madras HC decision, “We are truly grateful for this landmark decision by the Hon’ble Madras High Court upholding the difference between games of skill and chance in line with over six decades of jurisprudence on the subject. 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 Tamil Nadu High Courts upholding the legitimacy of such games. Being the apex industry body for online skill gaming and the voice of the MSME gaming startups, we at AIGF believe that this decision will be a great boost for this sunrise sector and generate more certainty among investors and the gaming community at large, and is a step in the right direction for this sunrise sector.” Landers further added.

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