HIGH COURT OF KERALA
T. R. Ravi, J
HEAD DIGITAL WORKS PRIVATE LIMITED – Appellant
Versus
STATE OF KERALA – Respondent
WP(C)/7785/2021
Gaming - Online Rummy - Kerala Gaming Act, 1960 - Sections 2, 3, 14, 14A - The court held that Rummy, including Online Rummy played for stakes, is a game of skill, exempt from the Act as it involves predominant skill over chance, thus ruling against the government notification restricting its play.
Fact of the Case:
The petitioners, companies offering online rummy, challenged a government notification that excluded online rummy played for stakes from exemption under the Kerala Gaming Act, 1960, claiming it as arbitrary and unconstitutional.
Finding of the Court:
The court concluded that Rummy, whether played online or offline, is a game of skill and that the amendment to the notification was unnecessary and violated constitutional rights, thereby invalidating the government's restriction.
Issues: The core issues were whether Rummy is strictly a game of skill, whether the inclusion of stakes alters its classification, and whether the government's notification contradicts existing legal frameworks.
Ratio Decidendi: The judgment established that Rummy's classification as a game of skill remains unchanged despite stakes, as per the existing provisions of the Kerala Gaming Act, 1960.
Final Decision: The court declared the government's notification as arbitrary and unconstitutional.
JUDGMENT
The question raised in these writ petitions is regarding the power of the Government to include the game "Online Rummy played for stakes" within the purview of the Kerala Gaming Act, 1960 (hereinafter referred to as the Act or the Kerala Act). The petitioners are all companies which are engaged in the business of developing and offering online games of skill in India and they are aggrieved by the notification issued by the Government, amending the exemption notification issued on 30.09.1976 under Section 14A of the Act. The reference to the exhibits is as they are produced in W.P.(C)No.7785 of 2021 which is treated as the lead case.
STATUTORY PROVISIONS:-
2. The State of Kerala which was formed by including areas which were under the erstwhile Governments of Travancore, Cochin and Malabar Presidency, was governed with respect to Gambling, by the Travancore Public Gambling Act, III of 1071ME (corresponding to
1896), The Cochin Public Gambling Act, IV of 1082 ME (corresponding to 1907) and the Madras Gaming Act, 1930 (III of 1930). After the formation of the State of Kerala, the Kerala Gaming Act, 1960 was enacted and the aforesaid enactments were repealed (to the extent it applied to the Malabar District, in the case of the Madras Act). The was enacted to make better provision for the punishment of gaming and the keeping of common gaming houses in the State of Kerala. As per Section 2 (1), "common gaming house" means any house, room, tent, enclosure, vehicle, vessel or any place whatsoever in which cards, dice, tables or other instruments of gaming are kept or used for the profit or gain of the person owning, occupying, using or keeping such house, room, tent enclosure, vehicle, vessel or place whether by way of charge for the use of instruments of gaming or of the house, room, tent, enclosure, vehicle, vessel or place or otherwise howsoever; and include any house, room, tent, enclosure, vehicle, vessel or place opened, kept or used or permitted to be opened, kept or used for the purpose of gaming. (2) defines "gaming" to include wagering or betting. (2) says that wagering or betting shall be deemed to comprise the collection or soliciting of bets, the receipt or distribution of winnings or prizes in money or otherwise, in respect of any wager or bet, or any act which is intended to aid or facilitate wagering or betting or such collection, soliciting, receipt or distribution.
3. The relevant portions of Section 3 , and Sections 14 and
14A of the Act, which have a bearing on the issue to be decided read as follows;
" Section 3 : Whoever-
(a) being the owner or occupier or having the use of any house, room, tent, enclosure, vehicle, vessel or place, opens, keeps or uses the same for the purpose of gaming-
(i) on a horse-race, or (ii) on the market price of cotton, bullion or other commodity on the digits of the number used in stating the amount of such variation, or (iii) on the amount or variation in the market price of any such commodity or in the digits of the number used in stating the amount of such variation, or (iv) on the market price of any stock or share or on the digits of the number used in stating such price, or (v) on the number of registration or on the digits of the number of registration of any motor vehicle using a public place, or (vi) on any transaction or scheme of wagering or betting in which the receipt or distribution of winnings or prizes in money or otherwise is made to depend on chance, or (b) xxxxxxxxx xxxxxxxxx xxxxxxxxx (c) xxxxxxxxx xxxxxxxxx xxxxxxxxx (d) xxxxxxxxx xxxxxxxxx xxxxxxxxx shall be punishable with imprisonment which may extend to one year, or with fine which may extend to one thousand rupees, or both.
Provided xxxxxxxx xxxxxxxxxxx “
Section 14 . Act not to apply to certain games.-
Nothing in the foregoing provisions of this Act shall be held to apply to any game of mere skill wherever played.
Section 14A. Exemptions.-The Government may, if they are satisfied that in any game the e
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