India’s online gaming industry is one of the fastest growing sectors of the Indian economy. The penetration of low-cost smartphones and reliable 4G networks, the inflow of domestic and foreign investment and snazzy marketing campaigns have together propelled the market value of the gaming industry to upwards of INR 300,00,00,000 (Indian Rupees three hundred crores). Today, India is one of the top 5 (five) mobile gaming markets in the world. However, this exponential growth has not come without its share of challenges. Indian lawmakers have come under significant pressure in recent times to curb the growth of real-money gaming, particularly online rummy and poker platforms that allow users to play for stakes. Numerous State governments have responded to this pressure and formulated laws that dilute the long-standing exemptions provided to games of skill under Indian gaming statutes. In this edition of JSA Prism, we take stock of the legal, regulatory and policy developments in the country’s gaming sector.
Tamil Nadu
In February 2021, the Government of Tamil Nadu notified the Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021 (“ TN Amendment Act ”) to amend certain provisions of the Tamil Nadu Gaming Act, 1930. The TN Amendment Act amended the definition of ‘gaming’ to include “ wagering and betting in cyberspace ” and prohibited games of skill if played for wager, bet, money or other stake.
On August 3, 2021, the Madras High Court in Junglee Games India Private Limited v. State of Tamil Nadu (“ Junglee Games Judgement ”), struck down the overarching ban on games of skill by the TN Amendment Act and clarified that games of skill which can be played online for stakes, such as rummy and poker, cannot be categorized as betting and/or gambling. The Madras High Court reiterated that rummy and poker are games of skill and not games of chance, and further clarified that there is no distinction between card games or board games such as chess or scrabble, for instance, being played physically ( offline ) or via cyberspace ( online ). A special leave petition is pending before the Supreme Court (“ […]
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