Kerala online rummy ban junked, marking ‘strength to strength’ wins for India online gambling industry

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The Kerala High Court joins the growing number of judicial bodies striking down government bans of online games of skills in the country. Recently, the high court overturned an amendment to the state government’s notification banning online rummy games in Kerala.

Online rummy a ‘game of skill’: Kerala HC

It doesn’t matter if it’s played with stakes or without stakes, online rummy is a game of skill, that’s according to Justice T.R. Ravi of the Kerala High Court.

The ruling is in response to a petition by four online rummy companies who were protesting the state government’s February 23 notification, clarifying that online rummy is not exempted from the general prohibition of gaming and gambling under Section 14A of the Kerala Gaming Act, 1960. The operators argued that state officials could not arbitrarily ban rummy, which is considered a game of skill, via a mere notification to an existing gaming act.

Justice Ravi sided with the operators, ruling that the notification was not only arbitrary and “illegal,” it also violates the fundamental rights of the companies that offer online skill games products to trade and commerce under Article 19(1)(g) of the Constitution as well as the right to equality under Article 14 of the Constitution. According to the Kerala HC, the Supreme Court has already ruled that rummy was “a game of mere skill,’’ so for this reason, online rummy was also a game of skill.

The court stated, “Online rummy played either with stakes or without stakes remains to be a ‘game of skill. Since the game does not come within the meaning of ‘gambling’ or ‘gaming,’ providing a platform for playing the game, which is in nature of business, can’t be curtailed.”

Instead of online gaming ban, India needs uniform regulation

The Kerala High Court ruling was welcomed by industry stakeholders. Skill Games Council member and former SC Judge Vikramjit Sen described the ruling a “positive move for the online gaming sector.” He said in a statement: “The Supreme Court and multiple high courts have reiterated numerous times that online games of skill are protected under Article 19(1)(g) of the Constitution. We see the Kerala High Court’s judgement as a positive move for the online gaming sector.”

The Kerala verdict is the latest boost for India’s online gambling industry, following the Madras High Court ruling which overturned Tamil Nadu’s move to ban online betting games like rummy and poker in the state. The bold legislation, which was also rolled out in February 2021, banned betting or wagering in cyberspace on poker, rummy and games of skill if played for a wager, bet, money or other stakes and sought to give violators up to two years in prison or fine not exceeding Rs 10,000.

Although the ruling marks yet another major step forward for India, the casino industry should regulate—via updated and uniform regulation that’s observed across the country—for both operators and governments to reap the full benefits of the online gambling market.

In an interview with SevenJackpots online casino comparison site, Touchstone Partners partner Uday Walia stressed that India has the potential to regulate—the only question is when.

“Unfortunately, it seems that what we are seeing right now are more local spur-of-the-moment pieces of action. However, what is good to note is that the gaming industry in India is going from strength to strength, and as such, could prove to be the right kind of pressure/lobby group one needs for the regulations to move in the right direction,” Walia said.

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