Gaming Report: Petition Filed Against Online Rummy in Madras HC, Apple U.S Removes PokerBros App & More

Real money rummy has been in the firing line in several Indian states. In a fresh attack on the online rummy industry, a practicing lawyer has filed a petition in the Madras High Court seeking a ban on all online rummy sites that have investments from foreign companies. The petitioner, M. Vinoth, has also sought that the court initiates the regulation of rummy platforms with no foreign stake.

In a jolt to the free-to-play mobile poker app PokerBros, Apple has removed the popular app from its app store in the U.S. Though the company insists it’s a temporary issue, players speculate that the app has run into trouble with Apple over compliance issues.

The COVID-19 pandemic has dealt a severe blow to the casino sector, and employee layoffs continue. MGM Resorts International recently confirmed that it plans to permanently lay off 18,000 employees across its various properties in the U.S.

Moving over to Asia, several casinos in Manila, Philippines, including the City of Dreams, have been allowed to reopen, albeit at limited capacity.

In Ukraine, the much-anticipated re-legalization of gambling recently came through after getting the nod from President Volodymyr Zelensky.

Petition Filed in Madras HC Seeking Online Rummy Ban

A fresh petition has been filed in the Madras High Court against online rummy. A practicing lawyer, M. Vinoth, has demanded a ban on online rummy platforms that have foreign investors holding a stake in the company. Vinoth has also sought the court to pave a legal way for direct regulation of online rummy platforms with no international investors.

According to a Bar and Bench report, Vinoth, in his petition, stated, “Many foreign companies have invested in the online rummy business more particularly Chinese Companies have invested in the business in India. The stake held by them is more than 70% of the total investment. It is obvious that the money earned goes to foreign countries. It will have its adverse impact in the Indian economy and also our internal security. If the online rummy portals are not checked, regularized, and monitored, it will ruin the life of youngsters and many families in India.”

He argued that online rummy remains an unregulated segment, and operators are “mining money,” with most of the profits being directed to foreign companies that have invested in domestic operators.

The petitioner also named a few such foreign companies like China-based Alibaba, Tencent Holdings and Youzu Interactive, French firm UBISOFT, U.S’ Rockstar Games, and Vietnam’s Stom Studio.

He charged that online rummy works on algorithms, rather than skill, with companies using players’ game data stored in their database to target regular players.

The petitioner also stated – “online gambling conducted by gaming houses under the guise of skill game or websites are illegal in states where gambling is prohibited.”

Rummy has always been a stronghold of the south, but a series of setbacks has eroded what was once the most profitable center for rummy operators. The most massive blow was delivered in 2017 when the Telangana government banned all online card games, including poker.

Last January, a division bench of Kerala High Court ruled that rummy is a game of skill but amounts to gambling if played for real money.

Political and local protest in Andhra Pradesh led the YSR Congress-led government to consider a ban on online gaming last July, with the state BJP unit also raising new demands for the same in March this year.

In July-end, the Madras HC had voiced concern over unregulated online rummy. The court advised the Tamil Nadu government to take measures and pass appropriate legislation for the same. With Vinoth’s petition, which is likely to come up for hearing next month, the issue has come on the forefront yet again.

Apple Removes PokerBros App

Free-to-play mobile poker app PokerBros has been removed from the Apple app store in the U.S. Though the existing app users in the U.S. continue to access the app unhindered, new iOS users need to visit the PokerBros website to download the app.

According to the company, this is a temporary issue due to “unexpected” reasons that will be resolved soon. The company tweeted to explain the situation, adding that players can download the iOS app from PokerBros.net.

Due to unexpected circumstances, the PokerBROS app was removed from the US Apple store yesterday. This means that for the next few days, new players will be unable to download the app from the US Apple Store. We sincerely apologise for any inconvenience this may cause.

— PokerBROS (@PokerBrosApp) August 28, 2020

Further to our previous tweet, we expect the app to be back in the App Store for US customers within the next few days. Existing players with the app downloaded can still login as normal. This issue only impacts new downloads in the short term.

— PokerBROS (@PokerBrosApp) August 28, 2020

PokerBros is a free-to-play poker app launched in 2019 that saw a spike in active users during the COVID-19 lockdown. It allows users to play private poker games with virtual chips, but like other “freemium” models, players have the option to buy packages of “play money” chips.

Some Twitter users reacted to the announcement by charging that the app is a scam. Despite the widespread speculations, PokerBros continues to be available on Google Play and on the iOS play store in countries outside the U.S.

iOS download available on https://t.co/WkUSEyYPBj now for those US based players currently impacted by our temporary removal from the App Store

— PokerBROS (@PokerBrosApp) August 29, 2020

Last June, Apple updated its terms and conditions for app publishers, underlining that HTML5 games could no longer be offered for real money. Operators were required to recode their apps for iOS. Some reports indicate that the app removal could be due to a violation of these terms.

MGM Resorts to Lay Off 18,000 Employees

In what comes as another big shocker for the hard-hit gambling sector in the U.S., MGM Resorts has announced that it plans to permanently lay off nearly 18,000 employees across the country. This amounts to almost a quarter of the company that has a workforce of 70,000.

Like other gambling operators, the company was forced to shutter its venues in the wake of the Corona virus pandemic.

In April, MGM Resorts initiated a massive employee layoff exercise, terminating the employment of 254 employees. The company also furloughed 63,000 workers.

Issuing a separation letter to the employees now being laid off, MGM CEO, Bill Hornbuckle, said, “Nothing pains me more than delivering news like this.”

“These decisions are never made lightly, and we deeply regret the hardship it will place on these individuals and their families.”

Hornbuckle wrote to the entire company staff, reiterating that it was still a tough road ahead though the business has picked up. The company is planning to permanently shut down 150 food and beverage locations.

On August 31, the furloughed employees completed six months off work. The company has promised to extend their health benefits, announcing that employees returning to their posts before 2021 ends, will retain seniority.

Manila Casinos Resume Operations

Several casinos in Manila, Philippines, have been permitted to reopen at 30% capacity. This includes the City of Dreams Manila as well as the integrated resorts in Entertainment City.

Indicating the same, Melco International Development said – “The Philippine Government has allowed PAGCOR-licensed casinos in areas covered by the General Community Quarantine to operate at 30% operational capacity. City of Dreams Manila is preparing for the resumption of its normal operations in accordance with the terms and conditions of this new guideline.”

PAGCOR, the country’s gambling regulator has since, also confirmed the news. The regulator had earlier granted permission to some of the country’s casinos to resume operations at reduced capacity, and the latest move is an extension of this trial.

PAGCOR’s official line on the same was, “Integrated resorts and casinos which obtained permits from their respective local governments are allowed to open on trial run under the strictest health and safety protocols.”

Ukraine Allows Re-Legalization of Gambling

Last September, Ukraine’s newly elected President, Volodymyr Zelensky, initiated efforts towards re-legalizing gambling in the country. Ukraine had banned gambling in 2009.

The bill was tabled before President Zelensky, who signed it into law on July 11. Though a proponent of gambling legalization, President Zelensky was expected to veto the bill to send it for revision, since he was opposed to certain amendments.

With the President’s approval in place, Ukraine’s parliament adopted the law on July 14.

The legislation permits organizing and conducting gambling in offline and online casinos, bookmaking services at physical betting locations and online betting platforms, slot machine halls, and online poker. It also underlines the requisite requirements for gambling venues, rules for the permitted gambling activities, and the license fee to be paid by operators. As part of the legalization, the Gambling Games and Lottery Commission will regulate gambling activities.