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        2021 (10) TMI 240 - HC - Indian Laws

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        Rummy remains a game of skill online and for stakes; exemption cannot be narrowed by notification. Rummy is a game of mere skill and falls outside the Kerala Gaming Act, 1960 under Section 14 because substantial skill in memory, judgment, and discarding ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          Rummy remains a game of skill online and for stakes; exemption cannot be narrowed by notification.

                          Rummy is a game of mere skill and falls outside the Kerala Gaming Act, 1960 under Section 14 because substantial skill in memory, judgment, and discarding cards predominates over chance. Playing rummy for stakes does not change that essential character, and Section 14A cannot be used to treat the same game as gambling merely because stakes are involved. Online rummy is treated the same way, since the digital format does not alter the core elements of the game. A notification excluding online rummy played for stakes was therefore described as arbitrary and invalid for conflicting with Articles 14 and 19(1)(g).




                          Issues: (i) Whether rummy is a game of mere skill and therefore outside the Kerala Gaming Act, 1960; (ii) Whether rummy played for stakes ceases to be a game of skill or falls outside Section 14 of the Kerala Gaming Act, 1960 and the exemption framework under Section 14A; (iii) Whether online rummy is also a game of skill and whether stakes alter its legal character; (iv) Whether the notification amending the exemption for rummy to exclude online rummy played for stakes is arbitrary, illegal and violative of Articles 14 and 19(1)(g) of the Constitution of India.

                          Issue (i): Whether rummy is a game of mere skill and therefore outside the Kerala Gaming Act, 1960.

                          Analysis: The governing statutory scheme distinguishes gaming on chance from games of mere skill. Section 14 excludes any game of mere skill from the Act. The earlier authoritative rulings on rummy hold that the game is not one of pure chance, because memory, judgment in holding and discarding cards, and the building up of sets require substantial skill. That interpretation treats "mere skill" as substantial or predominant skill, not the absence of every element of chance.

                          Conclusion: Rummy is a game of mere skill and falls outside the Act by force of Section 14.

                          Issue (ii): Whether rummy played for stakes ceases to be a game of skill or falls outside Section 14 of the Kerala Gaming Act, 1960 and the exemption framework under Section 14A.

                          Analysis: The presence of stakes does not alter the intrinsic character of the game. The skill required to play rummy does not depend on whether the game is played for money or not. Section 14A is only an exemption provision for games where skill is more predominant than chance, and it cannot be used to convert a game already excluded under Section 14 into a regulated or prohibited game merely because stakes are present. Stakes may be relevant to other factual situations involving gambling or side betting, but not to the essential classification of rummy itself.

                          Conclusion: Rummy played for stakes remains within the category of a game of skill and does not become a game outside Section 14 merely because stakes are involved.

                          Issue (iii): Whether online rummy is also a game of skill and whether stakes alter its legal character.

                          Analysis: The mode of play, whether physical or online, does not change the essential elements of rummy. The same skills involved in memorising cards, planning sets, and discarding intelligently remain present in the online format. Since the core game remains rummy, the online platform does not transform it into a game of chance. Likewise, the addition of stakes does not change the legal character of the game.

                          Conclusion: Online rummy is also a game of skill, and playing it for stakes does not change that character.

                          Issue (iv): Whether the notification amending the exemption for rummy to exclude online rummy played for stakes is arbitrary, illegal and violative of Articles 14 and 19(1)(g) of the Constitution of India.

                          Analysis: A notification cannot validly single out a game already excluded by Section 14 and treat it as though it were within the field of betting and gambling. The impugned notification, in substance, imposed a prohibition on online rummy played for stakes notwithstanding that the underlying game is a game of skill and not gambling. Such a restriction lacked rational basis and could not be justified as a reasonable restriction on the right to carry on business.

                          Conclusion: The notification is arbitrary, illegal, and violative of Articles 14 and 19(1)(g) of the Constitution of India.

                          Final Conclusion: The statutory exclusion for games of mere skill governs rummy and online rummy alike, and the challenged notification could not lawfully narrow that exclusion by targeting stakes.

                          Ratio Decidendi: Where a game is judicially recognised as a game of mere skill under the parent Act, its essential character is not altered by online play or by the presence of stakes, and an exemption notification cannot be used to reclassify or prohibit it as gambling.


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