Chennai (Tamil Nadu): The Madras High Court on Thursday set aside the state government's ban on online rummy and poker. It stated that a ban can be imposed on games of chance but not on rummy and poker that are considered to be games of skill.
The Mumbai-based online gaming companies had moved court against the Tamil Nadu government's ban on online rummy and poker. The petitioners also cited a Supreme Court verdict stating that rummy is a game of skills.
Speaking about the verdict, Chief Executive Officer of the E-Gaming Federation (EGF), Anurag Saxena, welcomed the court's verdict. "The verdict is yet another validation for the legitimate online skill gaming industry. Time and again, the Indian judiciary has struck down provisions seeking blanket prohibitions on skill gaming as Ultra Vires in the constitution. A forward-looking policy has the potential to significantly drive and support the growth of this emerging sector," Saxena said in a statement.
His statement also added, "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 and encourage and foster innovation. As an industry, we are optimistic that judgments like this will urge state governments to explore more progressive policy frameworks and regulatory structures for the sector."
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The case filed by the petitioners against the Tamil Nadu government's ban was heard by a bench of Madras High Court Chief Justice Sanjay Vijaykumar Gangapurwala and Justice Audikesavalu. It was adjourned after hearing on September 5 and the judgment was issued today.
Earlier, Tamil Nadu government had argued that many youngsters had taken loans to play this game and over 30 people have committed suicide after they failed to repay the money.
The Association of Online Gaming Companies on the other hand argued that it is a skill-based game and not gambling. A game of skills played with bets cannot be considered gambling, they stated adding that strict rules are followed by the online gaming companies.
The companies argued that the state government can only regulate online games but cannot ban them. Companies that set up a gaming platform pay a GST and since tax is collected, it cannot be called gambling, they stated.
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