'In the light of the aforesaid, the writ petitions, as such, stand partly allowed. The State may frame regulations as contemplated under Section 5 of the impugned Act, the bench added. If the State comes across the usage of bots or any dubious methods in the play of games of rummy and poker, it can take action and for that purpose also it will be necessary to uphold Section 10 of the impugned Act. Section 10 of the impugned Act may not be declared as ultra vires as it will be necessary for the State to know about the online games providers operating within its State and that they were not indulging in any games of chance. The bench said the State may make regulations as contemplated under Section 5 of the impugned Act, thereby providing reasonable regulations for the time limit, age restriction or such other restrictions in regard to playing of online games. In view thereof, the Schedule under Section 23, incorporating rummy and poker as games of chance, was set aside, the bench added. The apprehension expressed by the State that bots may be used or the dealer (software) would know the cards were without any substantive material. The State has miserably failed to demonstrate online games of rummy and poker were different and distinct from offline games of rummy and poker. It has been authoritatively held by the Supreme Court in a catena of judgments, so also this Court that the games of rummy and poker were games of skill.

The bench said having held that the State has got the authority to legislate on online games of chance, as gambling would be betting on the games of chance, it was not necessary to declare Sections 7, 8 and 9 of the impugned Act as ultra vires. The definition of 'online gambling' under Section 2(i) of the impugned Act shall be read as restricted to 'games of chance' and not games involving skill.the games of rummy and poker are games of cards, but are games of skill,' the bench said. It is held that the State is competent to legislate to the extent of prohibiting online gambling, i.e., games of chance, at the same time, it has got the authority to regulate online games of skill. 'We hold that the impugned Act, in its entirety, need not be held to be ultra vires. The first bench comprising Chief Justice S V Gangapurwala and Justice P D Audikesavalu partly allowed the writ petitions filed by All India Gaming Federation and other online gaming companies, which challenged the Act.

Poker set and wheel