Supreme Court Directs Andhra Pradesh HC To Consider Afresh Issues Relating To Online Rummy In The Light Of IT Rules Amendment 2023

The Supreme Court on Monday directed the Andhra Pradesh High Court to consider afresh issues relating to online rummy in light of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 notified by the Central Government.

The Andhra Pradesh High Court in its order dated 31.03.2023 had directed the State Government to form a committee to examine the manner in which online rummy is played to determine whether it a game of skill or game of chance. The High Court framed five questions for consideration, including whether rummy is a 'game of skill' or a 'game of chance' (issue no.1). 

The State of Andhra Pradesh then approached the Apex Court with the grievance that even though the order of the High Court is interim in nature, it has recorded findings on merits on Issue No.1, which are unsustainable in law. The issue raised by the state is on the finding of the High Court that if online rummy is a game of skill, it cannot be prohibited under the Andhra Pradesh Gaming Act, 1974 .   

Sr. Adv. Sajan Poovayya appearing for the Respondent argued that the matter has not been disposed of by the High Court and that it is inchoate. He argued that the order of the High Court has only asked for a report to be submitted based on which the matter will be considered. Subsequently the Central Government also made rules permitting certain games, he argued. 

Sr. Adv. Kapil Sibal appearing for the State of Andhra Pradesh argued that on the issue of law, the matter has already been disposed of. 'The High Court has said if its not a game of chance, you cannot prohibit it', he submitted. The committee report which is yet to be submitted can only go into facts, not the law, he contended. "The serious issue is that you can access this game any time, 24*7, there are suicides that have taken place, because children are addicted to it and for each game they charge money" he said.

A division bench of Justice J.K. Maheshwari and Justice K.V. Viswanathan directed the High Court to consider the issue afresh based on the report of the committee and the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 notified subsequent to the interim order of the High Court, uninfluenced by the previous findings in the impugned:

"We think it appropriate that since the order impugned is interim in nature, asking the report from the Government, therefore, on producing the said report, the High Court would look into all the issues afresh, uninfluenced by the findings recorded in the order, taking note of the amended rules, viz. Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023."

The petitioners, developers of online games, had approached the Andhra HC challenging the amendments to Section 2(1), 2(2), 2(4), 3(1), 3A, 4, 5, 6 and the substitution to Section 15 of the Andhra Pradesh Gaming Act, 1974. The case of the petitioners was that online rummy is a game of skill and is no different from physical rummy. The grievance of the Petitioners was that, before the above amendments were made, any game of skill was exempted from the purview of the Act by virtue of Section 15. But with the amendment to Section 15, a game of skill with stakes can attract the Penal provisions of the Act.

The High Court had framed the following issues for consideration:

(1) Whether the Rummy is a “game of skill” or a “game of chance?

(2) Whether the “game of skill” or business activity protected under Article 19(1)(g) of Constitution of India?

(3) Whether the “game of skill” or “game of chance” is distinct in nature?

(4) Whether the “game of skill” is beyond the purview of Entry-34 of List-II of Constitution of India, 1950?

(5) Whether the regulation of “games of skill”, the legislative competence of the State in preventing the legislation?

The High Court had concluded that there was not enough material on record to ascertain whether online rummy is a game of skill or chance:

“..it is apparent that there is no material to show the manner in which Online Rummy is played. Without knowing how it is played and the manner in which the operator functions, it may not be proper for this Court to come to a conclusion on disputed factual aspects..”

The Court thus constituted committee to submit a report on whether the game of online rummy is a game of skill or chance: 

“..it would be just and proper to direct the State Government to constitute a Committee consisting of a Judicial, Independent-Technical and Non-Technical Members [nothing to do with the Government], Two persons representing the platform operators, one Police Officer of the rank of Director General [well-versed in Information Technology] as Members of Committee and/any other Member representing the Government, to examine and submit a report as to the manner in which the Online Rummy is being played, within a period of Four [4] weeks from the date of receipt of a copy of this order. This exercise in our view is necessary for the reason that all the above issues raised for consideration would depend upon the manner in which Online Rummy is played namely whether it is game of skill or game of chance.” the High Court had directed in its January 31st order. 

Case Title: State Of Andhra Pradesh V. Play Games 24 And 7 Private Limited, SLP(C) No. 19057-19059/2023

Citation : 2023 LiveLaw (SC) 724

Click here to read/download order