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Legality Of Card Games In India

Author: LawSphereX

Category: General Law

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LEGALITY OF CARD GAMES IN INDIA

Prateek Pandey, B.A.LL.B.

ABSTRACT

As the gaming space in India continues to grow, attracting huge investments from both within and outside the country leading to increase in the number of players mostly involved in online gaming consisting of real money transactions such as Solitaire, Teen-Patti, Rummy, and Poker, the debate of Skill vs Chance game is still very much prevalent in Indian gaming sphere. The Constitution of India has entrusted the states with power to regulate and frame laws relating to betting and gambling. While many states today have adopted the Public Gambling Act of 1867 whereby games of chance which involve betting and gambling in any form are generally prohibited whereas games of skill (as per Section 12 of the Act) are exempted from prohibition, many on the other hand have introduced Legislations regulating the laws related to betting and gambling.

The Hon’ble Supreme Court of India in this regard through several landmark judgments has laid down certain guidelines as to what constitutes as game of skill and would not fall into the category of gambling/betting. One such landmark judgment where the Hon’ble Supreme Court observed the difference between “skill” and “chance” is State of Bombay vs R. M. D. Chamarbaugwala1 where the Hon’ble Court laid down that: • Games where the success of player depends on the skill of that person will not fall into the wide category of ‘Gambling’ and, • Games which are predominantly of skill, despite having an element of chance will be considered as games of skill.

1 AIR 1957 SC 699.

LEGALITY OF RUMMY

In the matter of State of Andhra Pradesh vs K Satyanarayana2 the Supreme Court went a step ahead and specifically observed the legality of the game of Rummy and held that the game of Rummy is that based on skill and not merely chance. However, in the same judgment, Teen- Patti was held as a game of chance by the Hon’ble Court. The Hon’ble Court in spite of ruling that, any game involving shuffling and dealing of cards contains a fundamental element of chance due to incalculable distribution of cards, ruled that Rummy is somewhat different, as Rummy involves certain amount of skill in memorizing the sequence of the cards as well as strategically holding and discarding of cards in order to successfully win a hand, thereby placing it into category of such business activities that are protected under Article 19(1)(g) of the Indian Constitution.

Also, in the case of Manoranjithan Manamyil Mandaram vs State of Tamil Nadu3 the Apex Court held that, whether a game is that of skill or chance would depend upon the facts and circumstances of the case and there is no strict interpretation as to what would constitute a game of skill/chance. Although, the Apex Court of the Country through several landmark judgments has provided clarity on Rummy being game of skill, many states have prohibited the same, as the power to regulate and legislate activities related to gambling and betting lies solely with the states, giving Rummy a unique legal position in India.

This duality of legal status of Rummy makes it imperative for the stakeholders to be updated with the laws related to Rummy and/or Betting and Gambling in India and navigate their way through the legal hinderances, which at times lead to discouragement among the Companies who just want to do business in India and contribute to the growing economy. LEGALITY OF SOLITAIRE Solitaire is a card game, the object of which is to use up all cards to form a particular arrangement and sequence. It is also referred to as “Patience” in the United Kingdom. Although there is a slight degree of chance involved in the game, the game in totality is not just based on chance, it rather is based on a player’s skill and his patience. As discussed above, “games of skill” are not fully regulated by any legislation and may or may

2 1968 AIR 825.

3 AIR 2005 MAD 261.

not be offered through physical or virtual platforms depending upon the regulations enacted for betting and gambling in a particular state. But Nagaland is one such state that is making the way forward by offering games of skill in a legal manner. The Nagaland Prohibition and Regulation of Online Games of Skill Act, 2015 enacted by the state of Nagaland is the only legislation in India that has been particularly enacted by a state in order to regulate the games of skill and give it a legal acknowledgment so that games of skill which are inherently not merely luck or chance-based games can be promoted and played by everyone.

Further, Section 2(3) of the Act defines the term “games of skill” to “include all such games where there is preponderance of skill over chance, including where the skill relates to strategizing the manner of placing wagers or placing bets or where the skill lies in team selection or selection of virtual stocks based on analysis or where the skill relates to the manner in which the moves are made, whether through deployment of physical or mental skill and acumen”4. Furthermore, an explanation to Section 2(3) provides a list of games that can be termed as “Games of Skill” in Schedule A of the Act which also specifically includes Solitaire. Although, the legal position of Solitaire is not very clear in whole of India but the Nagaland Act of 2015 seeks to have a pan-India application by the virtue of Section 2(1) and 2(2).

The explanation to Section 2(1) reads as follows: “Once a license has been obtained under this Act, wagering or betting on online ‘games of skill’ or making profit by providing a medium for playing ‘games of skill’ shall not amount to gambling so long as they are being provided to players and are being accessed by players operating from territories where ‘games of skill’ are exempted from the ambit of gambling”. LEGALITY OF POKER Poker is one of the most popular card games in the world. In poker, generally “a player bets that the value of his or her hand I greater than that of the hands held by others, in which each subsequent player must either equal or raise the bet or drop out, and in which the player holding the highest hand at the end of the betting wins the pot”5.

In India the legal position of Poker like the other card games is not very clear, however, certain states/ their gaming laws and courts have recognized Poker as a ‘game of skill’ while others have observed it as a ‘game of chance’. For instance, The Allahabad High Court in response to 4https://www. indiacode. nic. in/bitstream/123456789/15162/1/the_nagaland_prohibition_of_gambling_and_prom otion_and_regulation_of_online_games_of_skill_act_2015. pdf.

5 https://www.merriam-webster.com/dictionary/poker.

a petition filed by DM Gaming Private Limited under Article 226 of the Constitution held Poker and Rummy to be games of skill6. In addition to this, the West Bengal Gambling and Prize Competition Act, 1957 and the State of Nagaland through The Nagaland Prohibition and Regulation of Online Games of Skill Act, 2015 have specifically categorized Poker as a game of skill and not a game of chance/luck. However, states like Assam and Orissa have introduced a total prohibition on any game that involves playing for money or valuable security in any form irrespective of its reliance on skill or chance.

CONCLUSION

The legality of card games in India, particularly those involving skill and chance, remains a complex and evolving issue. While the Constitution of India grants states the power to regulate betting and gambling, the legal landscape is far from uniform, with different states adopting varying stances based on local laws and interpretations. The distinction between games of skill and games of chance plays a central role in determining the legality of popular card games like Rummy, Solitaire, and Poker. Several landmark Supreme Court judgments have provided clarity, particularly with regard to games like Rummy, where skill is deemed to play a predominant role despite the presence of chance elements.

Similarly, games like Solitaire and Poker have also been categorized as games of skill in certain jurisdictions, with Nagaland taking the lead by specifically recognizing and regulating such games under its 2015 legislation. However, the inconsistent legal framework across states creates a duality of status for these games, where their legality may differ depending on the region in which they are played. This uncertainty has created challenges for stakeholders looking to operate in the Indian gaming industry, as legal compliance becomes an ongoing concern. As the gaming sector continues to expand and evolve, it is essential for businesses and players alike to stay informed of the regulatory developments in each state, ensuring that they navigate the complex web of gaming laws effectively.

In conclusion, while the legal position of many card games in India is gradually becoming clearer, the need for uniformity in laws and better regulation remains crucial. A more standardized approach to classifying and regulating games of skill versus games of chance

6 https://ddnews.gov.in/en/poker-and-rummy-are-games-of-skill-not-gambling-allahabad-high-court.

could help provide the clarity needed for the industry to flourish, offering a secure environment for investment and growth in India’s booming gaming market.