E-Gaming Federation to challenge Tamil Nadu ordinance banning online gaming

Regarding rummy and poker as games of chance violates Supreme Court and Madras High Court judgments which overturned the law banning online games

The E-gaming Federation (EGF) is set to challenge the recent ordinance issued by the Tamil Nadu government to ban online gaming by categorising rummy and poker as games of chance.

Rummy has been regarded predominantly as a game of skill by the Supreme Court and held to be protected under Article 19(1)(g) of the Indian Constitution. Bringing rummy under the ambit of games of chance directly violates the Supreme Court judgments and the Madras High Court judgment which overturned the law banning online games, EGF said in a statement.

“After examining the ordinance, we have decided to file a lawsuit as it categorises rummy and poker as games of chance. This is in dissonance with multiple legal judicial pronouncements including the recent judgment by the Madras High Court, which has clearly segregated games of skill and chance. The Supreme Court and several High Courts have reaffirmed the status of skill-based games as legitimate business activity and the state must take cognizance of these judgments in developing an enabling gaming policy that safeguards players than resorting to a ban,” said Sameer Barde, CEO of EGF.

The Madras High Court had, in an earlier judgement, held that any game (including rummy and poker) in which the better skilled person would prevail more often than not, is a game of skill, and is distinct from gambling or a game of chance. The Court further held that when it comes to card games such as rummy and poker, there is no distinction between skill involved in physical form or in virtual/online form.

For the online skill gaming industry and for the State of Tamil Nadu, the need of the hour is a comprehensive online gaming policy that protects players and ensures that only legitimate online skill-gaming operators offer their services while weeding out the ones who break the law, the EGF statement said.

The Indian gaming market is expected to grow from current $2.2-5 billion in revenue by 2025. Growing at a CAGR of 38 per cent, the sector holds significant scope for overall economic growth and employment. Moreover, to unleash the potential of the sunrise sector, the central government has set up an inter-ministerial task force (IMTF) and MeITY has held consultations with all stakeholders on regulating the online gaming industry.