Tamil Nadu online gambling law: Madras High Court refuses interim injunction

The state government had banned online rummy and poker earlier this month, terming them as online games of chance in the legislation, thereby bringing them under the purview of online gambling.

The Madras High Court on April 27 refused to grant an interim stay on the operation of Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, which banned online games such as rummy and poker.

A division bench led by Acting Chief Justice A Raja posted the plea by online gaming companies for further hearing after the court vacations on June 2.

Senior counsels Abhishek Manu Singhvi and Aryama Sundaram appeared for the online gaming companies and gaming federation, respectively, while senior advocate Kapil Sibal appeared for Tamil Nadu.

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Skill gaming industry body The All India Gaming Federation (AIGF) along with real-money gaming firms Gameskraft, Games24x7, and Head Digital Works, have moved the Madras High Court, challenging the constitutionality of the Tamil Nadu government's online gambling law that came into effect on April 21.

This law sets the stage for a potential dispute with the Centre over regulating the burgeoning skill-based gaming industry in the country.

On April 6, Ministry of Electronics and Information Technology (MeitY) notified new gaming-related amendments to the IT Act 2021 on April 6, that will allow multiple self-regulatory organisations (SROs) to determine whether a real-money game, where the transfer of money is involved, is permitted to operate in India or not.

The Tamil Nadu government had banned online rummy and poker in the southern state earlier this month, terming them as online games of chance in the legislation, thereby bringing them under the purview of online gambling. Gambling is a state subject in India.

As reported by Moneycontrol on April 24, several online rummy and poker platforms, including A23, Classic Rummy, RummyCircle, and PokerBaazi, barred users from playing paid contests in Tamil Nadu.