Online games of skill cannot be played or offered for cash according to Delhi district judge
In a recent development, a District Court in New Delhi held that all online games, wཧhether games of skill or chance involving cash are illegal as per the Gaming as well as Information Technology Act and allied Rules ܫaccording to a news report in
Additional District Judge Ina Malꦑhotra in her opinion stated that games of skill including games like chess, poker, bridge and rummy do not enjoy the Constitutional right to freedom of trade and commerce guaranteed under Article 19(1)(g) of the Consti🧸tution as per .
According to Judge Malhotra, conducting such games for profit was res extra commercium and hence fell outside the ambit of the guaranteed�🌳� right under Article 19(1)(g).
The court tried to draw an artificial distinction between games of skill played in the physical form and online, holding that games of skill or chance where the websites charge a slice of the winnings as fee or rake is illegal as per Indian law. Further, the court al꧂so held that RBI and banks were free not to permit payment gateways for such websites𝓡 and portals.
Interestingly, the court also held tꦍhat advertising or sponsori🦹ng such websites is illegal under the penal provisions of the gaming Acts.
The court gave this decision in response to a petition filed by an internet start-up firm comprising of IIT-Delhi graduates. Delhi government was also made a party to this petition, but court proceeded ex-parte after th🧔e Delhi government failed to make its plead𒈔ings.
This decision is likely to impact the online gaming industry, especially a host of websites offering “skill games” for cash. However since the decision is given by a District court, it is not binding on any🎶 court or forum in India. Hence, though this verdict may not have an immediate impact on online gaming websites especially since the matter of whether games of skill can be p🃏layed for stakes and profit is
Hꦚowever the decision may change the RBI policy on allowing payment gateways for skill, though it is understood that decisions taken by th✱e RBI in this regard can also be challenged in courts.
The legal basis for giving this verdict is unclear and decision may have been given withou🌸t appreciating the well settled position of law and scheme of the Gaming and Information Techn𒀰ology law. Online gaming companies are said to be unhappy with this decision and are contemplating further legal recourse on this issue.
