Under Indian law, what is gambling and how is it different from skill games?
In 1996, the Supreme Court defined gambling as betting and wagering solely on chance games. In 1996, the Supreme Court specifically excluded skill games from the definition of gambling, regardless of whether they were played for money or not. The exact quote is as follows from the 1996 judgment:
“The expression ‘gaming’ in the two Acts has to be interpreted in the light of the law laid-down by this Court in the two1957 cases, wherein it has been authoritatively held that a competition which substantially depends on skill is not gambling. Gaming is the act or practice of gambling on a game of chance. It is staking on chance where chance is the controlling factor. ‘Gaming’ in the two Acts would, therefore, mean wagering or betting on games of chance. It would not include games of skill like horse racing”
Furthermore, the Public Gambling Act, which was the central law on gambling, and most subsequent state laws on the subject substantially state that “this Act shall not apply to games of mere skill wherever they are played”. With regard to Tamil Nadu laws, the Supreme Court also mentioned this in 1996.
“In any case…Section 11 of the Gaming Act specifically saves the games of mere skill from the penal provisions of the two Acts.”
Under Indian law, what constitutes a skill game?
According to the Supreme Court of India, a mere skill game is defined as follows:
There is no such thing as gambling in competitions where success depends on substantial skill and knowledge.A preponderantly skill-based game would be considered a “mere skill” game despite the fact that there is an element of chance.
In this sense, the term “mere skill” suggests a substantial degree or preponderance of skill.
Rummy is a game of skill, right?
According to the 1968 Supreme Court ruling that declared rummy a skill game:
“Rummy, on the other hand, requires certain amount of skill because the fall of the cards has to be memorised and the building up of Rummy requires considerable skill in holding and discarding cards. We cannot, therefore, say that the game of Rummy is a game of entire chance. It is mainly and preponderantly a game of skill. The chance in Rummy is of the same character as the chance in a deal at a game of bridge.”
Further, the Supreme Court in 1996 also stated
“A game of skill, on the other hand – although the element of chance necessarily cannot be entirely eliminated –is one in which success depends principally upon the superior knowledge, training, attention, experience and adroitness of the player. Golf, chess and even Rummy are considered to be games of skill. The Courts have reasoned that there are few games, if any, which consist purely of chance or skill, and as such a game of chance is one in which the element of chance predominates over the element of skill, and a game of skill is one in which the element of skill predominates over the element of chance. It is the dominant element –“skill” or “chance” — which determines the character of the game.”
Do games of skill enjoy any other protection legally?
Yes, in 1957 the Supreme Court stated that prize competitions which involve substantial skill are business activities that are protected under Article 19(1)(g) of the Constitution of India.
At www.rummybrigade.com, is it legal to play rummy for cash?
The various Supreme Court rulings and the Gaming Acts of India imply the following:
A game of chance is known as a game of gaming or gambling.The act of playing games of skill for cash does not constitute gambling.There are certain gambling laws that exempt games of skill from their penal provisions.Skill is the key to playing rummy.
In other words, it is perfectly legal to play rummy for cash on Rummybrigade.com as long as you aren’t playing from Assam, Odisha, Telangana, Andhra Pradesh, Nagaland, or Sikkim. We may consider offering our services to residents of these states as we learn more about their laws.