NEW DELHI: The Supreme Court on Wednesday upheld the validity of laws enacted by the Tamil Nadu and Karnataka governments criminalising online games played for stakes, including games of skill such as rummy and poker.
Setting aside the rulings of the Madras and Karnataka High Courts, which had struck down the laws, a bench of Justices JB Pardiwala and R Mahadevan observed there is no fundamental right to engage in betting and gambling.
According to the legal website Bar and Bench, the apex court said that even if such online games involve skill or chance, states can ban the same if money element enters the picture.
The Supreme Court also accepted the public health and public order concerns raised by the two states. It noted concerns over addiction, monetary losses and suicides linked to online money gaming and hence, proceeded to uphold the laws.
It may be recalled that an expert committee led by retired Madras High Court Justice K Chandru in its 2022 report had recommended a complete ban on online gambling and games with real money stakes in Tamil Nadu, citing their adverse effects, such as addiction, suicides driven by financial losses, etc., on the society.
The court also upheld the central government’s retrospective levy of 28% GST on online gaming companies and observed that such imposition was constitutionally valid.
The bench said online gaming platforms are not mere intermediaries but are to be treated as suppliers amenable to the Goods and Service Tax (GST) regime on levies and taxes.