Online Rummy and Poker: Games of Skill, Not Games of Chance - Madras HC Verdict

1. Background and Legislative Authority:

   • The impugned Act, in its entirety, is not considered ultra vires.
   • The State has the authority to legislate, prohibiting online gambling (games of chance), while also regulating online games of skill.
   • Definition of "online gambling" in Section 2(i) is limited to "games of chance," excluding games involving skill.

2. Rummy and Poker as Games of Skill:

   • Games of rummy and poker, though involving cards, are deemed games of skill.
   • Section 2(1)(iv) of the Act is read down to exclude skill-based games like rummy and poker.

3. Validity of Specific Act Sections:

   • Sections 7, 8, and 9 of the impugned Act are not declared ultra vires, as the State can legislate on games of chance.
   • The State failed to demonstrate the distinction between online and offline rummy and poker.

4. Concerns Addressed:

   • State concerns about bots or dealer software manipulation lack substantive material.
   • The Schedule under Section 23, designating rummy and poker as games of chance, is set aside.

5. Regulatory Authority:

   • State empowered to make regulations under Section 5 of the Act, providing restrictions on time, age, etc., for playing online games.

6. Section 10 Upheld:

   • Section 10, requiring the State to identify online game providers and prevent games of chance, is not declared ultra vires.
   • State can take action against bots or dubious methods in rummy and poker play under Section 10.

7. Verdict and Set Asides:

   • Writ petitions stand partly allowed; the prayer to declare the entire Act ultra vires is negated.
   • The Schedule designating rummy and poker as games of chance is set aside.
   • Sections 2(i) and 2(1)(iv) are restricted to games of chance, excluding skill-based games.