Stating that the prohibition would apply only to "games of chance" and not "games of skill", the court directed the state to regulate the games instead.
The Madras High Court excluded card games 'Rummy' and 'Poker' from the purview of the Act. (Wikimedia Commons)
Upholding the validity of the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act 2022, the Madras High Court on Thursday, 9 November, excluded the card games “Rummy” and “Poker” from the purview of the Act.
The First Bench, comprising Chief Justice SV Gangapurwala and Justice PD Audikesavalu, was disposing of petitions filed by online gaming companies that challenged the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act.
It ruled that the prohibition would apply only to “games of chance” and not to “games of skill”.
The bench said, “The prayer to declare the entire Act as ultra vires the Constitution is negated. However, the schedule of the Act, including the games of rummy and poker was set aside. Section 2(l)(4) of the Act may be read as restricted to games of chance and not involving games of skill, namely rummy and poker.”
The court also observed that the state government could regulate the games by restricting the time spent playing the game, setting age limits, etc, on both games of skill and chance, and it could not totally ban games of skill.
Arguing that games of skill were, per se, a distinct class that was differentiated from a game of chance and this distinction had existed for more than 100 years and was allowed by various courts in the country, gaming companies sought an interim injunction to the Act in their pleas.
However, the court refused to grant an injunction, during the course of the hearing.
Further, the gaming companies argued that the definitions provided in the Act were vague and would thus lead to arbitrariness. It was also submitted that games of skill are protected by Article 19(1) (g) of the Constitution and that the distinction of games of skill as online or offline was violative of Article 14 of the Constitution.
Countering it, the Tamil Nadu government argued that it was the Union government that transgressed into the state’s authority, as only the state is empowered to pass laws on betting and gambling.
Pointing out various high court orders that stated that though Rummy is a game of skill, if it involved gambling or brought in revenue, it can be regulated, the government argued that several people died by suicide due to online gambling, and the Act was brought to protect the public interest.
Based on the recommendation given by the Justice Chandru Committee, after reports of several people dying by suicide after betting and gambling in online games, the Tamil Nadu government, on 18 October 2022, passed a Bill in the Tamil Nadu Assembly banning online games.
Following it, the Governor promulgated the ordinance to ban gambling and regulate online games on 1 October last year, which lapsed on 27 November 2022, as Governor RN Ravi didn’t give assent to the Bill.
However, on 8 March 2023, Tamil Nadu Governor RN Ravi returned the Bill, refusing to give his assent.
On 9 March, a Cabinet meeting was scheduled and a unanimous decision was taken to pass the Tamil Nadu Prohibition of Online Gaming and Regulation of Online Games Bill, 2022, again in the Assembly session.
An Assembly session was called on 20 March. The Assembly unanimously re-adopted the Prohibition of Online Gambling and Regulation of Online Games Bill on 23 March and was sent for the approval of the Governor.
Sensing further delay by the Raj Bhavan in clearing the Bill, the Tamil Nadu Assembly again convened and adopted a resolution on 10 April urging the President to prescribe a specific time limit to respective Governors to give assent to the Bills passed by the Legislatures.
The next day, on 11 April, Governor RN Ravi gave his assent to the Bill banning online gambling.
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