At Perry4Law
we are frequently approached by online cards and non cards games
providers to ascertain the legality of their business models. We
guide them as per their business models and requirements but there
cannot be a single solution for various gaming stakeholders. This is
because different states have different laws regarding online gaming
and gambling in India.
Some stakeholders have already approached
the Supreme Court of India to get clarity on the legality of online
games like rummy, poker, etc. In response of the same, the Supreme
Court asked
the opinion of Central Government in this regard but the same has
been informally
denied by the Central Government. This means that till the
time Supreme Court actually says that online rummy, online poker and
online card games are legal in India, majority of these gaming
stakeholders may be exposing themselves to legal
risks and civil
and criminal liabilities.
Another problem related to this litigation is that
this is an issued between parties to the litigation alone and other
cannot derive benefit out of this litigation even if the ultimate
decision allows online poker and rummy in India. This is the reason
that many gaming companies have approached the Supreme Court to
implead them as necessary party to this litigation. While this may be
beneficial to clarify the position regarding these additional parties
as well yet it would also make them bound the decision of Supreme
Court. If an adverse decision is given by the Supreme Court, that
would be binding on them as well.
Another related problem with the proceedings taking
place at the Supreme Court is that till the time Supreme Court
decides this issue, various High Courts would not touch the games
with stakes issue at all. This is more so regarding online poker and
rummy legal issues as the matter is pending before the Supreme Court.
This is exactly what is happening in India as on
date. It has been reported
that the Hyderabad High Court has refused to grant relief to clubs in
the city who wanted the Hyderabad police prevented from
interfering or obstructing in any manner from running card rooms on
club premises where members and guests are allowed to play rummy with
stakes.
Justice Vilas V. Afzulpurkar was dealing with a
petition by the managements of Chiran Fort Club and nine others
challenging the action of the police in closing their card rooms. The
petitioners contended that in view of the declaration of the Supreme
Court in the case of Kishan Chander versus state of Madhya Pradesh,
the game of Rummy is not entirely a game of chance and is a game of
skill. So the closure of card rooms by the police was illegal.
While refusing interim relief, the judge said in
view of new findings in a similar case by the SC and the Madras HC,
the case needs a detailed examination to determine whether playing
Rummy with stakes will attract provisions under the Gambling Act or
not. This is a logical conclusion as the issue of playing poker or
rummy with stakes is still not clear despite the contrary beliefs. It
is certainly very risky when it comes to online poker and online
rummy in India.
Online card games websites may be legally
risky if not properly drafted and managed. In fact a majority of
online poker and rummy websites are flouting
laws of India and they can be punished any time by the
Government.
Perry4Law strongly recommends that till the time
Indian Supreme Court or Central Government clarifies the legal
position regarding online gaming in India, the online gaming/gambling
stakeholders must comply with existing and applicable techno legal
requirements of Indian laws.
Source: Global
Techno Legal News And Views.
