Madras HC Refuses to Stay the Real-Money Gaming Ban in Tamil Nadu After Writ Petition Filed by Junglee Games

Madras High Court & Junglee Games
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  • Attreyee Khasnabis December 9, 2020
  • 3 Minutes Read

On Monday, the Madras High Court denied the request for an interim stay on the real-money gambling ban in Tamil Nadu filed by online gaming platform Junglee Games India Private Limited. The writ petition challenged the constitutional validity of an ordinance promulgated by the state government on November 21, imposing a ban on any game, including rummy and poker, played with stakes on the internet.

The order comes just days after the Karnataka High Court asked the state government to respond to a Public Interest Litigation (PIL) seeking a ban on all forms of online gambling and betting.

The petition filed by Junglee Games and its COO, Rahul Nandkumar Bhardwaj, was listed for admission before a third Division Bench of Justices R. Subbiah and C. Saravanan on Monday. The petitioners urged the court to stay the operation of the ordinance till the disposal of their case.

In its affidavit, the petitioner company has stated that it was engaged in developing and offering online games of skill and other free games through its website and app. The senior counsel for the petitioners, PS Raman, contended that online gaming is carried out by the company legally, with around 300 employees having its headquarters in Gurugram.

The company has been offering competitive games of rummy in three popular formats — tournaments, points rummy, and pool rummy. The players are free to compete in free practice games, promotional tournaments, or real money games and tournaments.

Moreover, the company stated that it only charged a 9-15% service fee, depending on the stakes at the table. “It is pertinent to note that there is no betting, whatsoever, on the outcome of the online rummy games or other skilled games played between the customers,” the affidavit read.

The writ petition further questioned the validity of the ordinance, pointing out that the Supreme Court in 1968 and several High Courts across the country have accepted in various judgments that rummy is a game of skill, not of chance.

Also appearing for the petitioner, senior counsel Mukul Rohatgi contended that when rummy is being allowed in several clubs across the country, it cannot be banned online. Playing rummy online does not amount to betting, he added.

This is not the first time that Junglee Games had filed a writ petition challenging an ordinance banning real-money games. Back in 2017, when the state of Telangana was in the process of banning online gaming, a batch of writ pleas had been filed by Jungle Games, Play Games 24*7 Private Limited, and Head Infotech (India) Private Limited. The petition had challenged the government’s ordinance in bringing ‘online rummy’ game under the Gaming Act by amending provisions of Telangana Gaming Act, 1974. Sadly, the Telangana Gaming (Amendment) Bill was passed in November 2017, unequivocally banning online gaming and games of skill like rummy, poker, etc., in the state.

Junglee Games’ attempt at fighting the ordinance promulgated by the Tamil Nadu government did not fare any better as the Madras High Court denied the plea on December 7. The court, instead, ordered the state government to respond to the petition.

State advocate general Vijay Narayan and state advocate AL Somayaji said that youngsters mostly in the age group of 25-30 years are losing their valuable savings and earnings by playing real-money online games.

The state further argued that even though rummy is a game of skill, it also involves money, which amounts to gambling. The state government has to file its response by December 21.

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