Indian High Court rules poker and rummy as games of skill

Sudhanshu Ranjan September 13, 2024

SiGMA news

Indian High Court rules poker and rummy as games of skill

The Allahabad High Court of Uttar Pradesh has delivered a landmark decision affirming that poker and rummy are games of skill rather than gambling. This ruling directs relevant authorities to reconsider their previous denial of licences based on outdated interpretations. The decision is part of a broader trend among Indian High Courts recognising skill-based gaming as distinct from gambling.

Details of court ruling

In a notable judgement, the Allahabad High Court, through Justices Shekhar B. Saraf and Manjive Shukla, determined that poker and rummy are skill-based games. The ruling mandates that decisions regarding licences for these games be grounded in detailed judicial precedents rather than subjective assessments.

The Court criticised the prior denial of permission, stating that such decisions must be based on solid evidence and judicial review, not mere assumptions. This ruling aligns with previous decisions from other Indian High Courts, including those in Calcutta, Karnataka, and Madras, which have similarly classified poker and rummy as games of skill.

After hearing both sides, the court remarked, “In light of the fact that gambling is prohibited, the permission was denied without considering the fact that card games such as poker and rummy are games of skill and not gambling.”

Implications of ruling

The ruling is expected to significantly impact the licensing processes for gaming operators in India. By recognising poker and rummy as skill-based activities, the decision paves the way for more transparent and evidence-based licensing practices, which could encourage further investment in the gaming sector.

India’s online real-money gaming industry, valued at approximately $3.1 billion, is poised for substantial growth, with projections estimating a rise to $8.92 billion in the next five years. Real-money gaming currently contributes around 85% of this revenue, highlighting its significant role in the sector.

Reaction from gaming industry

The gaming industry has welcomed the court’s decision, viewing it as a positive step towards recognising the legitimacy of skill-based games. Stakeholders and operators anticipate that the ruling will lead to clearer regulations and more opportunities for growth within the sector.

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