Gaming federation moves Madras HC seeking stay on Tamil Nadu gaming law

Gaming industry body AIGF (All India Gaming Federation) has moved the Madras High Court seeking a stay on Tamil Nadu’s gambling law, enacted on April 21.

In its plea to the High Court, AIGF has alleged that the Tamil Nadu Prohibition of Online Gaming and Regulation of Online Games Act of 2022 would have far-reaching implications on gaming intermediaries operating in the state as well as throughout the country. ET has seen a copy of the petition.

“The members (of AIGF) offer games such as poker, chess, rummy, fantasy sports, casual games and e-sports, all of which are games of skill and have been determined to be games of skill by various constitutional courts. Some games involve risking of money (all of which are games of skill) and others do not (whether of skill or chance). None of these games however involve wagering and gambling,” AIGF said in its petition.

The petition also alleges that the reasons Tamil Nadu gave to bring the law were ‘fallacious.’

“It is evident that at a policy level the Impugned Act has been enacted without any basis or proper material to substantiate its requirement. It is evident that the Respondents have decided to ban a legitimate activity and are now trying to come up with reasons for it,” AIGF said.

The industry body also said that the Act had already been returned once by Governor RN Ravi and that made a case for how it was ‘manifestly unjust’ and ‘glaringly unconstitutional.’

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AIGF has also alleged that the Act banning online games was a violation of Article 14, 19 and 21 of the Constitution of India. Article 14 provides for equality before the law, Article 19 talks of freedom of speech and expression and Article 21 deals with protection of life and personal liberty. The Madras HC will hear the case on Thursday.

In a statement to ET, AIGF secretary Roland Landers said Tamil Nadu’s Act was “unconstitutional” and banned multiple online skill games.

“The law disregards over six decades of established legal jurisprudence and seems to be based on a completely wrong understanding of technology,” Landers said.

Earlier this month, Tamil Nadu Governor RN Ravi gave his assent to the bill, which proposed a complete ban on online gambling in the state, specifically with regard to rummy and poker.

Recently, the Ministry of Electronics and Information Technology (MeitY), too, notified the rules for online gaming which prohibited wagering and betting on real money games.

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