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Synopsis

While clarifying that the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act 2022  would not be applicable to games of skill like rummy and poker, the Madras High Court today upheld the validity of the Act. 

The bench of Chief Justice SV Gangapurwala and Justice PD Audikesavalu, while partly allowing a batch of writ petitions filed by All India Gaming Federation and a host of individual online gaming companies challenging the Act, said that it will be applicable only on games of chance.

The companies had challenged the Act, effective since April 21 this year, in an earlier attempt as well, which was withdrawn as the Act had not been notified at that time.

Today, while the court couldn't set aside the Act entirely, it directed that its provisions should be limited to games of chance.

Court, however, emphasised that the government could regulate both skill and chance-based games by imposing restrictions on playtime, setting age limits, etc., but a complete ban on skill-based games was not permissible.

The gaming companies sought to declare the Act unconstitutional and a violation of their fundamental rights.

In July this year, the high court had refused to grant an interim stay on the Act's operation on writ petitioners' prayer stating that the arguments for both interim and final relief were identical, therefore, rather than hearing the matter for the purpose of interim relief, it would prefer to take up the writ petitions for final hearing and decide conclusively.

Case Title: All India Gaming Federation v State and Others