SC Instructs Andhra Pradesh HC to Reevaluate Online Rummy Issues in Light of 2023 IT Rules Amendment

LI Network

Published on: 30 August 2023 at 17:47 IST

In response to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023, recently implemented by the Central Government, the Supreme Court has issued a directive for the Andhra Pradesh High Court to reexamine matters concerning online rummy.

Earlier, on March 31, 2023, the Andhra Pradesh High Court had issued an order mandating the State Government to establish a committee to investigate the nature of online rummy gameplay. This investigation aimed to determine whether online rummy should be classified as a game of skill or a game of chance, and it raised several pertinent questions, including the core query of whether rummy falls under the category of ‘game of skill‘ or ‘game of chance.

In response to this, the State of Andhra Pradesh approached the Supreme Court, expressing concerns over the High Court’s findings on Issue No.1, despite the interim nature of the order. The State contested that the High Court’s stance on the game’s skill-based nature contradicts the Andhra Pradesh Gaming Act, 1974, which regulates games of chance.

Representing the respondents, Senior Advocate Sajan Poovayya argued that the High Court’s decision remained inconclusive and pending, as it only requested a report for consideration. He further highlighted that the Central Government had also established rules allowing specific games.

Senior Advocate Kapil Sibal, representing the State of Andhra Pradesh, countered this argument by asserting that the legal aspect had already been settled. He noted that the High Court’s position implies that if online rummy is not deemed a game of chance, it cannot be prohibited. He also expressed concerns over the game’s unrestricted access, its potential negative impact on children, and its financial implications.

A division bench comprised of Justice J.K. Maheshwari and Justice K.V. Viswanathan issued a directive to the Andhra Pradesh High Court. The bench recommended that the High Court reconsider the matter based on the committee’s report and the recent Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023. The bench highlighted the importance of an unbiased evaluation, detached from previous conclusions:

“Given the preliminary nature of the impugned order, which seeks a report from the Government, we find it appropriate that once the report is submitted, the High Court should review all aspects afresh, without being influenced by the prior findings, and taking into account the amended rules—specifically, the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023.”

The case revolves around online game developers who challenged the amendments to several sections of the Andhra Pradesh Gaming Act, 1974, asserting that online rummy is a skill-based game akin to physical rummy. They objected to the revised Section 15, which subjects skill-based games with stakes to the Act’s punitive provisions.

The Andhra Pradesh High Court had initially formulated a set of issues for consideration, including whether rummy is a game of skill or chance, whether skill-based games are protected by Article 19(1)(g) of the Indian Constitution, and whether the regulation of such games falls within the legislative scope of the state.

Ultimately, the High Court recognized the absence of sufficient evidence to definitively categorize online rummy as a game of skill or chance. Consequently, the High Court established a committee to ascertain the game’s nature, highlighting the significance of this determination for the related legal considerations.

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