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2023 Supreme(Mad) 3016
HIGH COURT OF JUDICATURE AT MADRAS
SANJAY V. GANGAPURWALA, P.D. AUDIKESAVALU, JJ.
All India Gaming Federation & Ors. - Appellants
Versus
The State of Tamil Nadu Through Chief Secretary, Chennai & Ors. - Respondents
W.P.Nos. 13203, 13593, 13720, 13722 & 14704 of 2023
Decided On : 09-11-2023
For the Petitioners:Mukul Rohatgi, Senior Counsel for R.S. Diwagar , Advocate, Sajan Poovaiya, Senior Counsel, C. Manishankar, Senior Counsel for R.S. Diwaagar, Advocate, Satish Parasaran, Senior Counsel for R.S. Diwaagar, Advocate, Dr. Abhishek Manu Singhvi, Senior Counsel assisted by Suhaan Mukherji, Advocate, V. Ragavachari, Senior Counsel, Deepika Mulari, Pradeep Nayak, Samkeeth Vittal, S. Pratiks Bhadri Narayan, Shreya Narayanan, Harsh Hiroo Gursahani, Nikhil Parikshith, Abhishek Manchanda, Sayandeep Pahari, Arun Karthik Mohan, Ashwini Vaidialingam, L. Nidhiram Sharma, Akhil Anand, Himanshu Vij, Bharadwaj Ramasubramanian, Durga Bose Gandham, Advocates. For the Respondents:R1, Kapil Sibal, Senior Counsel assisted by Aparajita Jamwal, Advocate, R2, R. Shunmugasundaram, Advocate General assisted by P. Muthukumar, State Government Pleader, A.G. Shakeena, B. Thiyagarajan, Advocates, R3, Amit Anand Tiwari, Additional Advocate General Supreme Court assisted by Devyani Gupta, Amartya A. Sharan, Advocates, R4, P. Muthukumar, State Government Pleader assisted by R. Anitha, Special Government Pleader, K.M.D. Muhilan, Additional Government Pleader, K. Karthik Jagannath, Government Advocate.
The Tamil Nadu Prohibition of Online Gambling Act cannot classify online rummy and poker as games of chance; they are recognized as games of skill, thus the Act's provisions regarding these games are unconstitutional.
Headnote:(A) Constitution of India - Articles 14, 19, and 21 - Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022 - Challenge to the constitutional validity of the Act - The Act was enacted to prohibit online gambling and regulate online games, specifically targeting rummy and poker - The Court held that the State lacks legislative competence to classify online rummy and poker as games of chance, as they are predominantly games of skill - The inclusion of these games in the Schedule of the Act was set aside. (Paras 11.1, 11.3, 38.1, 38.2)
JUDGMENT
(Prayer: Petition under Article 226 of the Constitution of India seeking a writ of declaration to declare the Impugned Act being Tamil Nadu prohibition of Online Gambling and Regulation of Online Games Act, 2022 enacted by the first respondent as unconstitutional as the same is lacking legislative competence and/or being in violation of Constitution of India including the fundamental rights enshrined under Articles 14, 19 and 21. Petition under Article 226 of the Constitution of India seeking a writ of declaration declaring that the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022 (Act No 9 of 2023) is ultra vires the Constitution of India. Petition under Article 226 of the Constitution of India seeking a writ of declaration declaring Sections 2(i) read with Sections 7, 8, 9, 10, 23 and the Schedule contained in Act No. 9 of 2023 dated April 7, 2023 as arbitrary, void, illegal, and unconstitutional, in so far as the same applies to Rummy and Poker when played online with money or other stakes. Petition under Article 226 of the Constitution of India seeking a writ of declaration declaring Sections 2(i) read with Section 7, 8, 9, 10, 23 and the Schedule contain in Act No. 9 of 2023 dated April 07, 2023 as arbitrary, void, illegal, and unconstitutional, in so far as the same applies to Rummy and Poker when played online with money or other stakes. Petition under Article 226 of the Constitution of India seeking a writ of declaration declaring Sections 2(i) read with sections 7, 8, 9, 10, 23 and the schedule contained in Act No. 9 of 2023 dated April 7, 2023, Tamil Nadu prohibition of online Gambling and Regulation of online Games Act, 2022 as arbitrary, void, illegal, and unconstitutional, in so far as the same applies to rummy and poker when played online with money or other stakes.)
COMMON ORDER
SANJAY V. GANGAPURWALA, C.J.
1. All these writ petitions involve common question of law and are based on similar set of facts. To avoid rigmarole, they are decided by this common judgment.
2. The petitioners assail the constitutional validity of the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022 [for brevity, hereinafter referred to as the “Act of 2022” or “the impugned Act”].
3. The petitioner in W.P.No.13203 of 2023 is a Society registered under the Societies Registration Act, 1860. It claims to have been established with the objective of protecting consumers of online skill gaming and representing the interests of various online skill gaming Companies, including online skill gaming Companies offering skill-based games/platforms at various forums. The Members of the petitioner Society offer games such as poker, chess, rummy, fantasy sports, casual games and e-sports.
4. The petitioner in W.P.No.14704 of 2023 claims to be a Company engaged in the business of developing and offering online games of skill and other free games in India and abroad. The petitioner is currently engaged only in the business of designing, developing software relating to games of skill, deploying and maintaining an online gaming website and mobile applications based on games of skill for the Indian market.
5. The petitioner in W.P.No.13593 of 2023 is a Company incorporated under the Companies Act, 2013. It is in the business of operating online gaming platforms offering the game of rummy to its users across India, through its website/mobile based applications called “Rummyculture”, “Gamezy” and “Playship”, which comprises of money based and free variants of the game rummy.
6. The first petitioner in W.P.No.13722 of 2023 claims to be a Company registered under the Companies Act, 2013 and engaged in the business of developing and offering online games of skill in India. The petitioner contends that it is involved in the business of designing, developing software related to games of skill, deploying and maintaining an online gaming website and mobile applications based on games of skill for the I
