The Madras High Court has denied interim relief to online gaming companies challenging the Tamil Nadu Prohibition of Online Gambling and Regulation Online Games Act, 2022. The bench, comprising Chief Justice SV Gangapurwala and Justice PD Audikesavalu, stated that the arguments for interim relief and final relief are similar and should be heard together.
Senior Advocates Mukul Rohatgi and Dr Abhishek Manu Singhvi, representing the petitioner gaming companies and the All India Gaming Federation, informed the court that the companies were facing constant threats of criminal action despite the Supreme Court's recognition that games like Rummy and Poker are games of skill, not chance.
Senior Advocate Kapil Sibal, representing the Tamil Nadu government, highlighted that the request for interim relief had already been rejected by a previous bench. He urged the court to proceed with the final hearing instead.
The court decided to schedule the final arguments for July 13, allowing the online gaming companies to present their case. The state government will have the opportunity to respond on July 20 or any other convenient date.
The Tamil Nadu government had previously argued that online gaming addiction was negatively impacting families, justifying the need for the Act that prohibits all forms of online gambling and 'games of chance,' including online Rummy and Poker.
The All India Gaming Federation and multiple online gaming companies had challenged the validity of the Act and sought an interim stay on its implementation. However, the court refrained from issuing any interim orders, emphasizing that a decision could only be made after providing notice to the state government.
The case is set to proceed with the final hearing, where the constitutional validity of the Act and the concerns raised by the online gaming companies will be examined in detail.
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