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Friday, March 01 2024
Tamil Nadu

Madras High Court Verdict: Skill Element Recognized in Rummy and Poker, Schedule of Online Gambling Act Struck Down

The Madras High Court has ruled in favour of the skill classification for poker and rummy in the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, which is a noteworthy move. The Act's Schedule, which listed certain card games as ones that were dependent on chance and were therefore illegal, has been overturned by the court.
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Legal Recognition of Skill in Online Card Games; High Court Delivers Judgment on Tamil Nadu’s Gaming Legislation

Chennai: In a significant development, the Madras High Court has rendered its verdict on the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, upholding the skill classification for Rummy and Poker. The court has set aside the Act’s Schedule, which included these card games as ones based on chance and thus subject to prohibition.

Background: Legislation and Online Gaming Challenges

The Tamil Nadu government introduced the legislation in response to concerns over suicides linked to online gambling. The Act aimed to regulate and restrict online gaming, particularly games perceived as games of chance.

Writ Petitions Challenging the Act

Several writ petitions were filed challenging the Act, with the All-India Gaming Federation and other online gaming companies at the forefront. The petitions contested the constitutionality of the legislation and sought clarity on the classification of certain games.

Court’s Key Findings and Rulings
  1. Competence of the State: The Madras High Court affirmed the state’s authority to legislate on online games of chance while concurrently regulating online games of skill. The court differentiated between games based on chance and those involving skill.
  2. Definition of “Online Gambling”: The court restricted the definition of “online gambling” in the Act to “games of chance” and explicitly excluded games requiring skill. This nuanced approach recognized the distinction between chance-based and skill-based gaming.
  3. Skill Element in Rummy and Poker: The court categorically stated that Rummy and Poker, while being card games, are inherently games of skill. This acknowledgment aligns with earlier legal positions establishing these games as skill-based.
  4. State’s Failure to Establish Distinction: The court found the state’s argument that online versions of Rummy and Poker were distinct and required separate treatment lacked substantive evidence. Concerns about potential misuse of bots or dealer software were deemed unfounded.
  5. Setting Aside the Schedule: The Madras High Court set aside the Schedule under Section 23 of the Act, which previously listed Rummy and Poker as games of chance. This move recognized the skill element in these card games and removed the prohibition associated with them.
Implications and Regulatory Outlook

The court’s decision has several implications for the online gaming landscape in Tamil Nadu:

  • Skill-Based Recognition: The explicit recognition of Rummy and Poker as games of skill provides legal clarity and reinforces their distinction from games of chance.
  • Regulatory Authority: The judgment emphasizes the state’s authority to regulate online games, allowing for the imposition of reasonable restrictions such as time limits and age constraints.
  • Impact on Similar Cases: The decision sets a precedent for similar cases, potentially influencing the classification and regulation of online gaming in other jurisdictions.
Conclusion and Future Considerations

The Madras High Court’s verdict brings a nuanced perspective to the regulation of online gaming, acknowledging the skill element in certain card games. As legal landscapes evolve, this decision is likely to shape the approach to online gaming regulation, providing guidance on distinguishing between games of skill and chance.

In light of this judgment, stakeholders in the gaming industry, policymakers, and legal experts are expected to closely examine its implications and consider its impact on future legislative and regulatory frameworks related to online gaming.

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