Indian High Court classifies poker and rummy as games of skill
The Allahabad High Court in Uttar Pradesh just dropped a game-changer: they've deemed poker and rummy to be games of skill, not mere games of chance. This ruling may shake up the authorities' previous license-denial policies that were based on outdated interpretations. It's all part of an evolving trend among Indian High Courts recognizing skill-based games as distinct from games of chance [1].
The Honorable Justices Shekhar B. Saraf and Manjive Shukla made this bold decision. They slammed the brakes on subjective evaluations and license denials, demanding that decisions be based on solid evidence and judicial review instead [2]. The ruling echoes similar decisions from High Courts in Calcutta, Karnataka, and Madras, which also classified poker and rummy as games of skill.
The court observed, "Given that gambling is prohibited, permission was denied without considering that card games like poker and rummy are games of skill, not chance."
This landmark decision will reshape gaming licensing processes in India. Recognizing poker and rummy as skill-based activities opens the door for more transparent and evidence-based licensing practices, encouraging investments in the gaming sector and fostering growth [3].
The Indian online real money gaming industry stands at a jaw-dropping $3.1 billion. With projected growth to an astounding $8.92 billion in the next five years, it's clear that real money games play a significant role in the sector [4].
Industry players welcomed the judicial action, with stakeholders and operators hopeful that the decision will lead to clearer regulations and ample growth opportunities within the sector.
On the wider landscape,
- The ruling legitimizes skill games, leading to clearer regulations and a more stable legal environment for companies operating in this space.
- As investments pour in, the gaming sector may experience growth and expansion.
- Consumer confidence in engaging with online skill games will increase as they are seen as legitimate activities rather than illegal gambling.
- GST and taxation issues, such as tax disputes and operational compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations, will come under scrutiny.
- The ruling can contribute to a shift in public perception, reducing the stigma around games of skill and increasing their acceptance in society.
- The industry may need to adopt stricter responsible gaming practices to maintain public trust and avoid legal scrutiny.
- The Allahabad High Court's decision, deeming poker and rummy as games of skill, could lead to the adoption of clearer regulations in the online real money gaming industry.
- As investments flow into the gaming sector due to the recognition of poker and rummy as skill-based activities, the industry might witness growth and expansion.
- Consumers may gain increased trust and confidence in engaging with online skill games, perceiving them as legitimate activities rather than illegal gambling.
