MHC refuses to grant an interim stay for Online game prohibition law

CHENNAI: The Madras High Court has posted the case challenging Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act 2022, to July 13. The court also refused to grant interim relief for the online gaming companies.

All India Gaming Federation and other online gaming companies moved the Madras High Court (MHC) against the ordinance introduced by the Tamil Nadu government in 2022.

The case was listed before the first division bench comprising Chief Justice SV Gangapurwala and PD Audikesavalu.

Senior counsel Mukul Rohatgi appeared on behalf of the petitioners said, that the online games are not gambling but a game of chance.

Whereas betting and gambling go together, Mukul advanced his arguments. Game of chance is not gambling, the climate may look like it will rain but may not also, said the senior counsel to support his stand. Further, the Supreme Court has also given its order that online games are games of skill, he added.

The Tamil Nadu government has filed its counter affidavit before the court through Advocate General R Shunmuga Sundaram. The Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2002 is within the legal powers of the State legislature by the Constitution and not ultra vires as contended by the All India Gaming Federation and other online gaming companies.

After the suicide of 32 people including unemployed youths, auto drivers, drivers, and police who were affected by the online rummy and poker, the impugned law is necessary noted in the counter affidavit.

The Senior counsel Kapil Sibal appeared for the Tamil Nadu government, said that the bench has not granted an interim stay which was argued by the petitioners counsel for more than two hours, he demanded to fix a date for final hearing.

Accepting this, the bench posted the case to July 13, 2023 for further arguments. Senior counsel Kapil Sibal is expected to physically appear before the MHC on July 20, 2023.