All India Gaming Federation vs State of Karnataka
2022:KHC:4314-DB
Case Summary
[Fundamental Rights]
[Freedom of Speech and Expression]
Facts
In the case of All India Gaming Federation v. State of Karnataka, the All India Gaming Federation (AIGF) challenged the constitutional validity of the Karnataka Police (Amendment) Act, 2021, which imposed a blanket ban on online gaming, including games of skill like rummy and poker. The AIGF argued that the Act infringed upon their rights to conduct business and engage in legitimate activities, as these games are recognized as games of skill rather than chance. The Karnataka government justified the ban by citing concerns over gambling addiction and its social implications, claiming that online gaming led to significant financial losses for families and individuals.
Issues
The key issues before the court included:
Constitutionality of the Ban: Whether the blanket prohibition on online gaming, including skill-based games, was unconstitutional.
Definition of Games: Whether rummy and poker should be classified as games of skill or chance under the law.
Legislative Competence: Whether the state had the authority to legislate on matters related to online gaming and gambling.
Relevant Legal Provisions
Karnataka Police (Amendment) Act, 2021: This Act amended previous legislation to prohibit all forms of online gaming, including games considered to involve skill.
Article 19(1)(g) of the Constitution of India: This article guarantees the right to practice any profession or carry on any occupation, trade, or business.
Entry 34 of List II (State List): Pertains to "betting and gambling," which allows states to legislate on these matters.
Judgement
The High Court ruled that while states have the authority to regulate gambling, they cannot impose a complete ban on games of skill like rummy and poker. The court emphasized that these games involve significant skill and strategy, distinguishing them from games of chance. The judgment underscored that prohibiting skill-based games was excessive and unreasonable, violating Article 19(1)(g). The court directed the state to regulate rather than prohibit such games, allowing for appropriate controls to mitigate potential gambling-related issues without infringing on the rights of individuals engaged in skill-based gaming.
Nitya Desai
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