Why Tamil Nadu Wants to Ban Online Poker and Rummy?

In a significant move to regulate online gambling, Tamil Nadu has urged the Supreme Court of India to uphold its 2022 Act, which bans online rummy and poker for stakes. The state argues that these popular games, often perceived as skill-based, should be classified under the category of games of chance when played online due to the potential for addiction, financial distress, and public health risks.

Also Read: P. Vikram Kumar Challenges Tamil Nadu’s Online Gaming Regulations in Supreme Court

Rising Concerns Over Online Gaming Addiction

The state’s petition comes amid alarming statistics highlighting the negative social impact of online gaming. Tamil Nadu’s senior advocate Kapil Sibal presented written submissions to the court, arguing that online gaming has exacerbated issues like addiction, insomnia, anxiety, and depression. He further stressed that these issues have even led to suicides, with 47 cases of suicide directly linked to online gambling losses reported between 2019 and 2024.

In defence of the 2022 Act, Tamil Nadu cited the findings of a committee led by retired Justice K. Chandru. The committee highlighted the disproportionate effects of online gaming addiction on vulnerable groups, particularly the youth, who are prone to behavioural manipulation due to the online format. Disrupted circadian rhythms, impulsivity, and irrational financial decisions during late-night hours were noted as factors contributing to the negative impact of online gaming.

Legal and Constitutional Basis for the Ban

The state justified its position by referencing four entries in the State List of the Constitution, under which it claims the authority to legislate on online gambling. These entries include Public Order, Public Health, Sports and Entertainment, and Betting and Gambling. Tamil Nadu argued that the rise of online gaming, particularly in digital formats, presents new threats to public health and order, making regulation crucial.

Tamil Nadu further differentiated between offline and online versions of games like rummy and poker. While the rules of the games may remain the same, online platforms have the potential to introduce higher elements of chance. The state pointed out that the absence of physical cues, reliance on opaque algorithms, and faster gameplay significantly reduce the skill element, turning the games into more unpredictable forms akin to gambling.

The Threat of Manipulation and Anonymity

The state also argued that, unlike offline gaming, where the outcome depends more on the player’s skill and decisions, online platforms have complete control over gameplay. This increases the potential for manipulation through the design of algorithms, making the online versions of games like rummy and poker more susceptible to gambling-like behaviour. The anonymity provided by online gaming and the ease of frictionless payments contribute to players losing control, resulting in significant financial losses.

The Constitutional Debate: Gambling vs. Skill-Based Games

Tamil Nadu’s argument also touched upon a crucial legal issue: the Madras High Court’s interpretation of past Supreme Court rulings. The High Court had ruled that betting cannot be divorced from gambling in games involving skill. Tamil Nadu challenged this interpretation, claiming that it was a misreading of constitutional principles. The state contended that betting, even in skill-based games, falls under its legislative competence.

Public Welfare vs. Fundamental Rights

In response to objections raised by gaming companies regarding their rights under Article 19(1)(g) (freedom to practice any profession), Tamil Nadu emphasised that no fundamental right is absolute. It argued that the ban was a proportionate and reasonable restriction placed in the public interest to protect vulnerable individuals and uphold public health. The state highlighted that the right to privacy and trade freedoms cannot supersede the government’s constitutional duty to safeguard public welfare, especially in the face of addictive environments.

Conclusion: Tamil Nadu’s Push for Regulatory Authority

Tamil Nadu’s legal team urged the Supreme Court to uphold the 2022 Act, which categorises? Online rummy and poker as games of chance when played for stakes. The state contended that its legislative actions are consistent with constitutional values, based on empirical data, and aimed at protecting public order, health, and morality.

The Supreme Court’s ruling on this matter will have significant implications for the future of online gaming regulation in India, balancing the constitutional rights of businesses with the pressing need to protect public health and welfare.

Also Read: Madras High Court Backs Tamil Nadu’s Online Gaming Ban and Aadhaar KYC: Impact on Poker & Rummy

FAQs

1. What is the Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021?
   
   • It is a law that bans online gambling, including popular games like rummy and poker for stakes, in Tamil Nadu.
     
2. Why does Tamil Nadu argue that online poker and rummy should be banned?
   
   • Tamil Nadu claims that these games, when played online, pose significant risks such as addiction, financial losses, and mental health issues like depression and anxiety.
     
3. How does Tamil Nadu justify its legislative actions?
   
   • The state argues that it has constitutional authority under various State List entries and that the rise of online gambling presents new threats to public health and order.
     
4. What is the difference between offline and online versions of rummy and poker?
   
   • While the rules are identical, online versions are more prone to manipulation and involve more chances due to faster gameplay and opaque algorithms.
     
5. What are the implications of this case for online gaming businesses?
   
   • If the Supreme Court upholds the ban, online gaming platforms could face significant regulatory hurdles in Tamil Nadu, affecting their operations in the state.

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Content Courtesy: Storyboard