Legal clarity in the Indian online gaming space

The new ruling by the Madras High Court doesn't just emphasise the difference between skill-based games and chance-based ones, it also falls in line with existing legal judgments, including the Supreme Court's previous ruling and more than sixty years of legal history.

It's a significant moment for online gaming in India, showcasing how the industry is constantly changing. This ruling is a big step toward establishing a balanced and healthy gaming environment within the law.

What makes this ruling particularly noteworthy is its emphasis on the ongoing debate surrounding skill versus chance in online gaming. It not only prompts a re-evaluation of current policies but also kindles inclusive dialogues, recognising the necessity for a balanced approach to encourage innovation while curbing concerns about illegal gambling activities.

The court's spotlight on the distinction between games of chance and games that necessitate skill rightly paves the way for sports like Poker and Rummy, aligning with the spirit of Article 19(1)(g) of the Indian Constitution. Therefore, this ruling serves as a shield against misconstruing profit generation as a punishable offense and as an industry that is aptly considered a sunrise sector in the Indian economic scenario, it is a much-needed clarity.

The ruling by the Honourable Madras High Court also elucidates the complexities within the legal framework. It sheds light on key aspects, highlighting the historical legal stand that recognises sports like Poker and Rummy as games of skill rather than games of chance.

Also, the court’s examination of the state's contentions regarding online gaming providers using bots or engaging in illegal activities underscores the necessity for evidence before branding online gaming as chance-based, distinct from its offline counterparts.

Furthermore, the ruling emphasises the power of the state to regulate online games of skill, offering a structured approach to address concerns such as time limits, age restrictions, and other regulatory aspects, thus helping in creating a robust gaming ecosystem.

I believe that the court provided nuanced guidelines, reshaping the definition of online gambling to specifically exclude mind sports like Poker and Rummy, while setting aside contentions that these games belong to the realm of chance. The verdict underlines the importance of reasonable regulations and the state's power to examine and ensure that online game providers operate within legal boundaries.

It’s a commendable step toward fostering a balanced, regulated, and thriving gaming environment. As the online gaming sector continues to burgeon, it's imperative to navigate these legal intricacies prudently, ensuring a fair and conducive atmosphere for both innovation and compliance with legal norms.

Let’s welcome this clarification. It is a forward-looking perspective that will help contribute positively to the gaming community by providing a secure and enjoyable gaming experience for players across India including Tamil Nadu.

Navkiran Singh is the CEO and Founder of online gaming company Baazi Games