Landmark Decision: Madras HC Affirms Skill Element in Online Rummy and Poker

• Validity of the Act: The court determines that the entire Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, need not be declared ultra vires.

• State's Legislative Authority: The state is deemed competent to legislate on prohibiting online gambling (games of chance) while also having the authority to regulate online games of skill.

• Definition of "Online Gambling": The definition of "online gambling" in Section 2(i) is restricted to "games of chance," excluding games involving skill. Section 2(1)(iv) is partially invalidated.

• Rummy and Poker Exclusion: Games of rummy and poker, though involving cards, are recognized as games of skill. Section 2(1)(iv) is read down to exclude games of skill like rummy and poker.

• Validity of Specific Sections: Sections 7, 8, and 9 of the Act are not declared ultra vires, as the state's authority to legislate on games of chance is acknowledged.

• Skill Nature of Rummy and Poker: The court emphasizes the skill aspect of rummy and poker, citing precedent, and rejects the state's contention that online versions differ significantly from offline versions.

• Concerns about Bots and Dealer Knowledge: The court dismisses state concerns about the use of bots or dealer knowledge, deeming them without substantive material. The Schedule, including rummy and poker as games of chance, is set aside.

• State's Regulatory Powers: The state is granted the authority to make regulations under Section 5 of the Act, including provisions for time limits, age restrictions, and other controls on online gaming.

• Section 10 Validity: Section 10, which requires the state to be aware of online game providers and their practices, is not declared ultra vires. The state may take action if bots or dubious methods are detected in rummy and poker games.

• Partial Allowance of Writ Petitions: The writ petitions are partly allowed, rejecting the prayer to declare the entire Act ultra vires. The Schedule, including rummy and poker, is set aside, and certain sections are upheld with conditions. All India Gaming Federation Vs. State of Tamil Nadu