As expected, the All India Gaming Federation, along with several gaming operators, namely, Gameskraft, Games24x7, and Head Digital Works, filed writ petitions challenging the Tamil Nadu Prohibition of Online Gambling & Regulation of Online Games Bill 2022 in the Madras High Court on April 26, just five days after the online ban took effect in the state.

Almost immediately after the ban was enforced, all major gaming operators across poker, rummy, and fantasy sports verticals started geo-blocking players from Tamil Nadu. Like the last challenge in 2022, the petitioners are seeking an interim stay on the ban and have questioned the legislative competence of the Bill, claiming it violates the Constitution.

On Wednesday, AIGF and the gaming companies, through Senior Counsel Abhishek Manu Singhvi, approached the bench of Justices S. Vaidyanathan and R. Kalaimathi for an early hearing of the petitions given the court’s upcoming summer vacation holidays from May 1.

The Division Bench informed senior counsel Singhvi that the matter would be listed before the first Division Bench of Acting Chief Justice T. Raja and Justice D. Bharatha Chakravarthy on Thursday, April 27, if the proper formalities were completed on time.

A similar law passed by the AIADMK government in 2020 was struck down by the first Division Bench of the Madras High Court in August 2021 because there could not be a blanket ban on games of skill, raising prospects of a similar outcome in the current matter. Not after the ban was overturned, the legislative assembly passed a similar Bill in October last year. While the Tamil Nadu Governor RN Ravi sent back the Bill the first time, he finally granted his assent on April 10.

The state government notified the rules on the official gazette on April 21, 2023, enforcing a blanket ban on all pay-to-play games in Tamil Nadu and making it a punishable offence for both players and operators, leading to the present litigation.

Speaking on the matter, Roland Landers, CEO of AIGF, said, “The Tamil Nadu government has promulgated an unconstitutional law, which bans multiple online skill games. The law disregards over six decades of established legal jurisprudence and seems based on a completely wrong understating of technology.”

Roland Landers added, “As the oldest and largest gaming industry body and being the voice of Indian MSME start-ups, we have challenged the constitutionality of the law before the Hon’ble Madras High Court. We have full faith that our judicial system will uphold the fundamental rights of the gaming platforms and their users, as it has been doing for over 60 years.”

Tamil Nadu Government’s Fight With Pay-To-Play Gaming Industry

Tamil Nadu is one of several southern states in India with a strong opposing stance against online pay-to-play. The state first attempted to ban pay-to-play online games in February 2021, with the government passing the Tamil Nadu Gaming and Police Laws (Amendment) Act 2021.
Several gaming operators and AIGF filed petitions in the Madras High Court against the ban on August 3, 2021. After extensively hearing the case, the court quashed the legislation, calling it “Excessive and Disproportionate.”

However, in its order, the court clarified that the state could enact new legislation regulating online games. The government also has an appeal against the August 2021 High Court order pending for hearing in the Supreme Court.

Immediately after the High Court ruling, the state tasked retired Justice K Chandru to study the ill effects of online games on residents. Justice Chandru recommended a complete ban on online games, giving the state reason to promulgate the Tamil Nadu Prohibition of Online Gambling & Regulation of Online Games Bill 2022.

The assembly passed the Bill on October 19, 2022. Still, Governor RN Ravi requested clarification and returned the Bill 131 days later, on March 6, citing concerns about the law’s constitutional validity.

Persistent with its plan to ban online games, Tamil Nadu Chief Minister MK Stalin tabled the all-new “The Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Bill” before the state legislative assembly on March 23. The assembly approved and readopted the Bill for the second time on March 23 and sent it to Governor RN Ravi for approval. Succumbing to political pressure, the Governor finally approved the legislation on April 10.

As predicted, the AIGF and the gaming operators have challenged the new law. All hopes are on the court accepting an interim stay on the ban till the final disposal of the case.

Credit: Pokerguru