In a major boost to the online gambling industry, the Madras High Court repealed a state government law banning online games like rummy, poker, and other games of skill that involve gambling. challenges.
Reversing an amendment to the Tamil Nadu Gaming Act that banned online gaming, a bench composed of two members of Chief Justice Sanjib Banerjee and Justice Senthil Ramamoorthy said “the total ban on online gaming is disproportionate and irrational.”
The Madras HC said the court was not against such gambling and that nothing in the ordinance will prevent the government from introducing appropriate legislation on the matter in accordance with constitutional principles of decorum.
Roland Landers, Managing Director of the All India Gaming Federation (AIGF), said: “We welcome the Madras High Court order which reiterates that the court is not against online gambling and calls on the government to design a regulatory framework to provide clarity. to the sunrise online gaming industry with a view to encouraging investments leading to technological advancements as well as the generation of income and jobs.
According to KPMG estimates, India’s online gambling industry is expected to grow at a compound annual growth rate of 21% in fiscal years 21-25 to reach a size of Rs 29,000 crore from Rs 13,600 crore current. Based on AIGF estimates as well, the pandemic has seen a 50% increase in the number of mobile game users in India.
States that had banned online gambling also reportedly included Andhra Pradesh and Telangana. The rationale the state government emphasized by banning it with an ordinance in 2020 was the growing number of criminal activity and suicides.
Based on a report by EY and FICCI, the online gaming industry grew 18% in 2020 to reach Rs 7,700 crore. It showed that the number of online gamers has also increased from 300 million in 2019 to 360 million in 2020.