European Gaming Lawyer magazine Spring 2014 | Page 42

game of bridge. In all games in which cards
are shuffled and dealt out, there exists an
element of chance, because the distribution
of the cards is not according to any set
pattern, but is dependent upon how the
cards find their place in the shuffled pack.
Presently, there has been no case in India
where such card games (except Rummy)
have been tested against the principle of skill
versus chance. But by reference the SC has
stated flush and brag to be games of chance
and bridge to be a game of skill.
Like in most jurisdictions, even in India,
the growing popularity of Texas Hold’em
Poker cannot be doubted. There is lack of
clear jurisprudence in India on whether
Texas Hold’em Poker is a skilled based game.
In the absence of any statutory law or Indian
precedents, the Indian Courts tend to look at
the case laws of other countries.
Interestingly, Karnataka High Court
recently clarified that no specific license or
permission was required in Karnataka for
conducting the game of poker if it played
as a game of skill, the court did not go into
the substantial merits of whether poker as
was proposed to be played is a game of skill
under Indian laws.13
Collection of stakes at the
Rummy & Poker tournaments
Another important issue that arises
especially for online poker and rummy
tournament websites is whether the
owners hosting the tournaments (and
other games of skill) can collect stakes or
derive profits from the players.
The Madras High Court14 in 2011
held that rummy played with stakes
would amount to gambling and unsettled
a rather settled position of law. Different
interpretations by different high courts
give rise to ambiguities on the position
of law on collection of stakes from the
game of rummy. However, this matter
is in appeal before the SC which has
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currently temporarily stayed the
operation of this order. While the said
appeal pertains to playing Rummy with
stakes in physical premises, certain online
platforms offering Rummy have also filed
Special Leave Petitions before the SC
challenging the Madras High Court order
and the said cases have also been combined
with the appeal pending before the SC.
This will perhaps be one of the most critical
decisions for the industry and all eyes are set
on the court’s impending verdict.
D. Prohibitions for Foreign Direct
Investment & Foreign Technology
Collaborations in Gaming Industry
Under the Foreign Direct Investment
Policy (FDI Policy) of India issued by
the Ministry of Commerce