The Madras High Court has struck down the Tamil Nadu Gaming and Police Laws (Amendment) Act of 2021, which bans playing of online betting games like rummy and poker with stakes.
The first bench of Chief Justice Sanjib Banerjee and Justice Senthilkumar Ramamoorthy passed the order on Tuesday while hearing a batch of writ petitions filed by a host of private companies offering online games.
The law was enacted by the previous AIADMK government.
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The bench declared as unconstitutional, Part II of the TN Gaming & Police Laws (Amendment) Act, 2021, which banned betting or wagering in cyberspace and also games of skill if played for a wager, bet, money or other stakes.
BAN AGAINST ARTICLE 19 (1) (g)
By imposing a wide ranging complete ban, the least intrusive test was violated and the ban had thereby fallen foul of Article 19(1)(g) of the Constitution that allows people the right to practise any profession, or to carry on any occupation, trade or business, the bench said.
It also added that the legislation imposing a wide-ranging ban must be regarded as excessive and disproportionate to the object sought to be achieved.
The bench, however, granted liberty to the state to pass another legislation, without any lacunae, adding that nothing in this judgment would prevent the state government from introducing appropriate legislation conforming to the Constitutional principles of propriety.
“Since 1968, the Supreme Court has made it clear that rummy is a game of skill and not a game of chances. Therefore, online rummy cannot be banned. This court, therefore, strikes down the amendment in its entirety as ultra vires the Constitution,” the bench noted.
The court also called the game a legitimate business, adding that the ban was only in Tamil Nadu.
Additionally, the petitioners raised the question that if rummy is allowed to be played physically in clubs, then why ban the same online? They also stated that rummy was not gambling like three cards.
WHAT DOES THE STATE GOVT SAY?
The Tamil Nadu government, however, contested that teenagers and adults were losing their entire earnings and savings in these online betting games. They added that though rummy might be a game of skill, the game using stakes will become gambling.
Earlier on July 26, when the court reserved its orders, Advocate General R Shanmugasundaram sought time to get instructions as to whether the new DMK government could amend the law, passed during the AIADMK regime in February this year, or promulgate an ordinance since the ban was imposed in public interest.
However, the court declined the request and said there was no scope for the court to await the government’s decision after conclusion of arguments.
When the AG claimed that online games were susceptible to manipulation, the bench quipped “you regulate it. You can’t ban the games altogether”.
GAMING FEDERATION WELCOMES THE VERDICT
Welcoming the order of the Madras High Court, Roland Landers, CEO, All India Gaming Federation said the order iterates that the court is not against online gaming, and “calls for the government to devise a regulatory framework to provide clarity to the sunrise online gaming industry, with a view to encouraging investments leading to technological advancements as well as generation of revenue and employment.”
He further said as the oldest online skill gaming industry body, the All India Gaming Federation has most of the stakeholders of the online gaming industry as its members.
“We at AIGF have been at the forefront of ensuring global best practices for its stakeholders through the self-regulation skill games charter that covers all aspects of the online gaming business, overseen by an advisory of experts. To reinforce its process, AIGF has also partnered with Arthur D Little (ADL) and looks forward to wholeheartedly supporting and offering its expertise and experience if required to the government in this endeavour,” he added.
In 2018, the All India Gaming Federation released the Skill games charter, which is based on the four foundations of integrity,legality, global best practices and good governance.
The charter focuses entirely on player protection, responsible gaming, including guidelines for marketing and advertising, AIGF said in a press release.
(With inputs from PTI)
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Source: https://www.indiatoday.in/law/story/madras-hc-tamil-nadu-gaming-act-online-gaming-rummy-poker-1836430-2021-08-04
