Is online rummy a game of chance or skill? Andhra Pradesh High Court orders State to set up a committee

While the court agreed that physical rummy is a game of skill, it concluded that there was insufficient evidence to make that determination.

Direction to form the Committee

On Tuesday, the Andhra Pradesh High Court directed the State government to form a committee to investigate how online rummy is played to determine whether it is primarily a game of skill or a game of chance. The order was issued by a bench of Justices C Praveen Kumar and K Manmadha Rao while hearing a petition challenging an amendment to the Andhra Pradesh Gaming Act, 1974, which states that even playing a skill game with stakes is punishable.

Lack of Clarity

While the court agreed that physical rummy is a skill game, it determined that there was insufficient evidence to determine whether online rummy is a skill or chance game. Given the ambiguity, the State was directed to form a committee comprised of judicial, independent technical, and non-technical members, two platform operators, a police officer of the rank of director general, and any other member representing the government, and to submit a report within four weeks.

Arguments of Petitioners

The petitioners in the case argued that prior to the amendment to the Act, any game of skill, no matter where it was played, was exempt. This exemption was, however, removed following a recent amendment. This amendment was challenged as illegal, arbitrary, and in violation of Articles 14, 19(1)(g), and 21 of the Constitution. The petitioners also claimed that games of skill are not only protected by the Constitution, but also by the Supreme Court’s decision in RMD Chamarbaugwala v Union of India, which stated that games requiring the exercise of skill can only be regulated and not banned.

Reasonings by State

The state argued that the amendment was made to regulate virtual games involving betting, gambling, or any game involving such activities. Furthermore, the State stated that, according to statistical data, the majority of people who use online platforms are either unemployed or have limited financial resources.

In this regard, it was stated that there have been several instances where people have resorted to death by suicide or crime in order to overcome the financial burden of having lost beyond their means. It was also stated that the State has the authority to pass laws that either prohibit or regulate betting or gambling in accordance with its socioeconomic needs.

Games of skill and games of chance have distinct characteristics

After carefully reviewing the submission and case law, the bench concluded that games of skill and games of chance have distinct characteristics. Furthermore, the parliament would fail if it attempted to criminalise prize competitions involving skill games. Nonetheless, the High Court clarified that the prohibition can be imposed for the purpose of maintaining public order if the game is not a game of skill. Following these observations, the Court concluded that there was insufficient evidence to determine whether online rummy was a game of skill or a game of chance.