The Allahabad High Court in Uttar Pradesh made a landmark ruling, confirming that poker and rummy are games of skill, not gambling. This ruling instructs the relevant authorities to reconsider their previous decisions to deny licenses based on outdated interpretations. This decision is part of a broader trend in Indian High Courts recognizing skill-based games as distinct from gambling.
Details of the Court Ruling
In a notable judgment, Allahabad High Court judges Shekhar B. Saraf and Manjive Shukla ruled that poker and rummy are skill-based games. The ruling mandates that decisions regarding licenses for these games should be based on detailed judicial precedents rather than subjective assessments.
The court criticized previous license denials, noting that such decisions must be based on solid evidence and judicial review, rather than mere assumptions. This ruling aligns with previous decisions by other High Courts in India, including those in Kolkata, Karnataka, and Madras, which also classified poker and rummy as skill games.
After hearing arguments from both sides, the court stated, "Given that gambling is prohibited, the refusal to grant licenses without considering that card games like poker and rummy are games of skill rather than gambling is inappropriate."
Impact of the Ruling
The ruling is expected to significantly impact the licensing procedures for Indian gaming operators. By recognizing poker and rummy as skill-based activities, the ruling paves the way for more transparent and evidence-based licensing practices, which could encourage further investment in the gaming industry.
The Indian online real-money gaming industry is valued at approximately $3.1 billion and is expected to grow significantly, projected to reach $8.92 billion in the next five years. Currently, real-money games contribute about 85% of the industry's revenue, highlighting their significant role in the sector.
Reaction from the Gaming Industry
The gaming industry has welcomed the court's decision, viewing it as a positive step towards recognizing the legality of skill-based games. Stakeholders and operators anticipate that the ruling will bring clearer regulations and more growth opportunities for the industry.
