The Supreme Court rules that states can regulate and ban online games that involve betting or wagering, overturning earlier High Court decisions in Tamil Nadu and Karnataka. A bench led by Justice J B Pardiwala sets aside judgments from the Madras and Karnataka High Courts that had struck down state laws restricting online rummy and poker when played with stakes. The Supreme Court says the High Courts erred in holding that the state legislations were beyond their authority. The Court also clarifies that even games involving substantial skill can be subject to state regulation if they adversely affect public well-being. It further holds that betting and wagering do not receive constitutional protection even when they are linked to games of skill. The Court’s reasoning emphasizes the need to restore public tranquility. In addition, the Supreme Court states that online gaming operators are not treated only as intermediaries or facilitators; they supply actionable claims, which makes them subject to Goods and Services Tax (GST).
Supreme Court upholds states’ power to ban online gaming with stakes
The Supreme Court rules that states can regulate and ban online games that involve betting or wagering, overturning earlier High Court decisions in Tamil Nadu and Karnataka. A bench led by Justice J B...
- The Supreme Court upholds state laws banning online gaming played with stakes in Tamil Nadu and Karnataka.
- The Court sets aside earlier Madras High Court and Karnataka High Court judgments that had quashed those restrictions.
- The Court says states can regulate even games of substantial skill if they harm public well-being.
- It holds betting and wagering are not constitutionally protected, even when connected to games of skill.
- The Court states online gaming operators supply actionable claims and are not merely intermediaries, linking the activity to GST.
The Supreme Court upheld Tamil Nadu and Karnataka laws banning online games played for stakes, backing states' powers to regulate betting and gambling activities
3 months agoThe Supreme Court on Wednesday upheld the powers of states to regulate and ban online gaming involving betting and wagering, setting aside earlier judgments of the Madras and Karnataka High Courts that had quashed state laws restricting online rummy and poker played with stakes.A bench led by Justice J B Pardiwala said the high courts had committed an error in striking down the legislations enacted by the Tamil Nadu and Karnataka governments.Also Read: SC upholds govt retrospective 28% GST levy on online gaming companiesReading out the judgment, the Court observed that even games involving substantial skill could be regulated if they adversely affect public wellbeing.“If games of substantial skill create problems for the wellbeing of the masses, then states are empowered to legislate upon,” the bench said.The Court further held that betting and wagering activities are not entitled to constitutional protection even if they are linked to games of skill.“Betting, wagering not entitled to protection, even if games of skill,” the bench observed, adding that “tranquility of public is to be restored”.The apex court set aside the judgments of the Madras High Court and Karnataka High Court that had earlier struck down provisions banning online gaming with stakes in the two states.The Supreme Court also said online gaming operators are not merely facilitators or intermediaries, but suppliers of actionable claims that are amenable to Goods and Services Tax (GST).
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