Ban on online rummy unconstitutional: Kerala High Court

The Kerala High Court on Monday held that the ban on online rummy when played for stakes is unconstitutional as it is predominantly a game of skill (Gameskraft Technologies Pvt Ltd v. State of Kerala). .Single judge Justice TR Ravi allowed a batch of petitions that had challenged the State government's ban on online rummy.The Court ruled that banning online games of skill played for money, such as rummy, is arbitrary and a violation of fundamental rights as the same has been granted exemption as per the Kerala Gaming Act as not coming under the ambit of gambling."It is hereby declared that the notification is arbitrary, illegal and in violation of Articles 14 and 19(1)(g) of the Constitution of India, since the notification has been issued in relation to a game which already stands exempted from the provisions of the Act under Section 14 of the Kerala Gaming Act and since the game does not come within the meaning of 'gambling' or 'gaming', providing a platform for playing the game, which is in the nature of business cannot be curtailed", the Order stated.Hence, the notification banning online rummy is unconstitutional and hence, unenforceable..The Court issued the order on a group of petitions preferred by operators of online platforms offering the game of rummy, among others, for users across India. The petitioners challenged a notification issued by the Government of Kerala dated February 23, 2021 under the provisions of the Kerala Gaming Act, 1960 which effectively bans "online rummy when played for stakes" ..The petitioners relied on the judgments of the Supreme Court in State of Andhra Pradesh v K Satyanarayana and Ors and KR Lakshmanan v. State of Tamil Nadu and Ors. in which it was held that rummy is primarily a game of skill. Moreover, the top court had held that competitions where success depended on substantial degree of skill would not amount to gambling and for that reason could not be prohibited under State gambling and gaming legislations. The petitioners, therefore, contended that any profit derived by the petitioners from offering a game of skill such as online rummy played with stakes, is a 'business' that stands protected under Article 19(1)(g) of the Constitution of India..It was also contended that the power under Section 14A of the Kerala Gaming Act,1960 is limited to specifying what is a game of sufficient skill to warrant the exemption from gambling regulations.As it is a settled position that rummy is a game of skill for the purpose of State gambling and gaming regulations, the notification banning online rummy is ultra vires Article 246 of the Constitution, the plea said. .The Court found merit in the arguments of the petitioners and issued the order declaring the notification issued by the government as unenforceable. .The petitioners were represented by advocates Santhosh Mathew, Thomas P Kuruvilla, P Prijith and Martin Jose. The Madras High Court had also recently struck down an amendment to the Tamil Nadu Gaming Act, 1930 imposing a ban on online gaming, including online rummy and online poker with stakes.The Bench of Chief Justice Sanjib Banerjee and Justice Senthilkumar Ramamoorthy concluded that by imposing a wide ranging complete ban, least intrusive test was violated and the ban had, thereby, fallen foul of Article 19(1)(g) of the Constitution of India (right to practise any profession, or to carry on any occupation, trade or business)..[Read Order]