In a significant decision, the Allahabad High Court (AHC) ruled that poker and rummy are games of skill, distinguishing them from gambling under Indian law.
The case arose when M/s DM Gaming Pvt. Ltd. challenged a decision by the Agra Police denying them permission to operate a poker and rummy gaming unit. The denial of permission cited legal prohibitions on card games like poker and rummy and the possible risk of criminal gatherings disturbing public peace.
The learned counsel appearing for the petitioner relied on the landmark precedents like “State of Andhra Pradesh Vs. K.S. Sathyanarayana (AIR 1968 SC 825)” and “Junglee Games India Private Limited vs State of Tamil Nadu (W.P.No.18022 of 2020)”, and accordingly the AHC held that poker and rummy are skill-based games, and any restrictions on offering such games would violate the petitioner’s right to practice any profession or business under Article 19(1)(g) of the Constitution.
The AHC further noted that, “the permission was denied without going into the aspect that card games i.e. Poker and Rummy are absolutely a game of skill and not gambling…Denial of the permission only on the basis of the clairvoyance of the officer concerned cannot be a ground that can be sustained…” and directed the police to revisit the issue and provide a reasoned order.
While previous rulings have consistently classified rummy as a game of skill, opinions on poker have varied. For example, in the case of “Dominance Games Pvt. Ltd. vs State of Gujarat (Special Civil Application No. 6903/2017)” the Gujarat High Court held poker as a game of chance, a decision which is currently under appeal. In contrast, several States including West Bengal, Nagaland, and Karnataka have recognized poker as a game of skill.
In fact, the Madras High Court struck down a second ban on poker and rummy, recognizing both as skill-based games. The Tamil Nadu government, however, has filed a special leave petition against this order, which is currently pending before the Supreme Court.
Nonetheless, this ruling has reinforced the legal distinction between skill-based games and gambling, offering a much-needed relief to all gaming companies operating in this space.
– Umang Sheth, Senior Associate
Adarsh Himatsinghka, Senior Associate
Raashi Vaishya, Associate