Madras HC Denies Interim Relief to Online Gaming Companies

The Madras High Court has rejected the plea for interim relief by online gaming companies challenging the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act 2022.

The bench, comprising Chief Justice SV Gangapurwala and Justice PD Audikesavalu, noted that since the arguments for interim relief and final relief are the same, the matter can be heard and decided in finality.

Senior Counsel Mukul Rohatgi and Senior Counsel Abhishek Manu Singhvi, representing the online gaming companies, sought an interim stay on the Act’s operation. They argued that the companies are facing daily losses and threats of criminal action. They informed the court that they are unable to continue their business due to the current law and have been compelled to shut down in the state.

The counsels further contended that the State lacks the authority to enact such a law unless it involves gambling. They also referred to the Supreme Court’s ruling that rummy is a game of skill.

Senior Counsel Kapil Sibal, appearing for the Tamil Nadu Government, informed the court that a previous bench, comprising Acting Chief Justice T Raja and Justice Bharatha Chakravarthy, had already heard and rejected the plea for interim relief. He urged the court to proceed with the final hearing of the case.

Consequently, the court scheduled the matter for arguments on July 13 by the online gaming companies, with the State given an opportunity to respond by July 20 or any other suitable date.