Online gaming companies challenging the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act 2022 argued before the Madras High Court on July 13, 2023 that the state cannot abolish the distinction between games of skill and games of chance. The case, All India Gaming Federation v State of Tamil Nadu and Others, WP 13203 of 2023, was heard by a bench of Chief Justice SV Gangapurwala and Justice PD Audikesavalu1.
Senior Counsel AM Singhvi, appearing for one of the online rummy companies, submitted that games of skill form a separate legal class and that this distinction has existed for more than 100 years1.
"Games of skill are per se always a distinct class differentiated from game of chance. Watershed distinction cannot be abolished by a deeming function,"
Singhvi argued that where a game of skill contains an element of chance, the predominance test applies and the predominant nature of the game must be examined. He said an element of chance in an admitted game of skill does not change the nature of the game, citing bridge and chess as examples. He also submitted that playing a game of skill with stakes does not convert its intrinsic nature into gambling, and that whether a game is played online or offline does not change that nature1.
Senior Counsel Mukul Rohatgi, also appearing for the gaming companies, submitted that there was no damage to the tranquillity and order of society that necessitated the ban. Senior Counsel Aryama Sundaram, appearing for the Gaming Federation, argued that the Act's definitions were vague and would lead to arbitrariness, that penal consequences could not rest on subjective satisfaction, that games of skill are protected by Article 19(1)(g) of the Constitution, and that distinguishing a game of skill as online or offline violates Article 141.
The bench had earlier refused interim relief to the companies1.
What it means for players
The Tamil Nadu Act remains in force while the challenge continues, and the court has not granted interim relief, so no pause on enforcement has been reported1. The arguments turn on whether games such as rummy and other skill-based formats fall outside the ban, and on whether the Act's definitions are clear enough to be enforced. Until the court rules, players in Tamil Nadu have no reported confirmation that skill-based online games are exempt. The wider question of how India treats games of skill versus games of chance is central to this case, and the outcome may affect how India's online gaming ban is applied. For the general position on gambling in India, and for how other jurisdictions in the region draw the same line, see gambling laws in Asia.
What happens next
The matter has been posted to July 18 for further arguments1. No date for a final judgment has been reported.
