SC upholds Tamil Nadu, Karnataka ban on online games
In a significant judgment on Wednesday, the Supreme Court upheld Tamil Nadu and Karnataka laws banning online games for money or stakes, including rummy, poker, and fantasy sports, stating there is ‘no fundamental right in betting.’
The bench of Justices JB Pardiwala and R Mahadevan stated that betting and gambling activities do not fall under ordinary commercial protection, affirming that ‘no fundamental right could be claimed over betting and gambling.’
The court, in its verdict, stressed that states can prohibit betting-linked online games, underscoring that public health concerns and wagering elements outweigh considerations of whether a game involves skill or chance.
The top court passed the ruling in the case of the State of Tamil Nadu versus Junglee Games, as the bench set aside the earlier decisions of the Madras High Court and Karnataka High Court, striking down the state laws.
After the HC quashed the state laws, TN and Karnataka moved the apex court, challenging the HC judgment, seeking appropriate orders from it. The SC bench observed that once betting or wagering becomes part of a game, whether it is based on skill or chance, it no longer remains the central issue.
“When the element of betting and gambling enters the picture, the nature of the game ceases to be of relevance,” the court said. The court also stressed that putting money on uncertain outcomes raises concerns around addiction and repeated attempts to recover losses or gain more. It also accepted the states’ arguments regarding public health and public order concerns.
The judgment also highlighted that games involving skill may not, on their own, amount to gambling, but states still have the power to regulate or prohibit betting on such games. Tamil Nadu introduced an ordinance in November 2020, which it later replaced with the Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021.