What Players Should Know Before Playing
Have you heard about Online Pool Rummy? Rummy games are becoming extremely popular in India. There are more than 3.2 crore people in India playing rummy games. These games require a lot of skill. This is the distinction that makes it important to understand the legality of such games. This article will take you on a journey to understand the legal implications of online rummy games.
Understanding online pool rummy
Do you know what rummy games are? Rummy is a category of games in which players are required to match cards of the same sequence or rank with the same suit.
What is Pool Rummy?
Pool Rummy is simply a form of Indian Rummy. A fixed entry fee is paid by the players. This entry fee contributes to the game's price pool. Pool rummy is the longest version of rummy games. Players get eliminated from the game once they reach 101 or 201 points.
Online vs. Offline Rummy
Online and traditional rummy have the same rules. The only difference is about needing a smartphone and a deck of cards. You just need to download a rummy app on your smartphone to play online. Playing rummy offline requires a table arrangement with a deck of cards. You must also set and track a timeline for offline play.
The convenience of playing the game online is making rummy platforms popular globally. Let's understand the legality of online rummy games in different jurisdictions.
Is online rummy legal?
Online rummy apps are completely legal in most parts of India. Playing money-based rummy games is not allowed in 8 states. On the other hand, 10 states have openly given money-based rummy games a legal status.
Legal status in Indian states
Here is the status of the game in different states when played with money.
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Not Legal |
Legal |
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What makes online rummy legal?
The difference between ‘Game of Skill' and ‘Game of Chance' is what shapes the legality of the game. Rummy is seen as a game of skill in Indian jurisdiction. There is an element of chance involved. For example, what cards you receive are about luck. However, winning is determined by how skilfully you play the game. You need to memorise the cards and apply a strategy based on what you have in your hand. You also become better at the game with practice and learning.
Let's see how legal frameworks and the court's judgment positions rummy.
Indian regulations governing online rummy
The Supreme Court of India has passed judgment about the nature of rummy games on several occasions.
Case rulings
Consider the case of Andhra Pradesh versus Satyanarayana (1968). The Supreme Court ruled that rummy games are not completely based on chance like three-card games. The result of the game depends on how skilled you are in grouping and arranging cards. In another case in Madras High Court, playing rummy for stakes was initially declared illegal. But this decision was later challenged by a bench of the same court. Rummy was ultimately held as a game of skill.
Supporting legal frameworks
The Public Gambling Act (1867) is legislation that makes it illegal to play the game of chance with real money. Games like rummy and poker are considered games of skill. So playing online rummy is categorised as “gaming” and not “gambling.”
Article 19(1)(g) of the Constitution of India protects competitions that are based on skills. Such competitions fall under the category of business activity. Online rummy competitions enjoy a legal status under this article.
Opposing laws
Are you wondering why online rummy is not allowed in the 8 states when it is recognised as a game of skill? This is due to the Indian Contract Act (1872). This legislation makes wager contracts void.
What is a wager contract? It is an agreement to pay money between two parties. One party pays the other if an unknown event happens. They receive the payment if the event does not occur. Rummy is already established as a game of skill. The 8 states do not allow money-based rummy due to the complexities related to wager contract law.
Let's check the legal status of rummy apps outside of India.
Legal frameworks in other nations
Online rummy games are played by a growing number of players globally. In the United States, platforms hosting rummy games are required to get a license from state authorities. You cannot operate a rummy platform legally without licensing.
You will not find a single federal law governing games like rummy. Legislation such as the Unlawful Internet Gambling Enforcement Act and the Wire Act are meant for controlling activities involving stake money. This legislation does not apply to skill-based games like rummy. Online gaming is regulated by states.
So what are online rummy platforms doing to maintain compliance with the laws?
Compliance requirements for online rummy platforms
Rummy platform operators are required to have a valid gaming license. The operators are also required to deploy high-level data protection and transaction security measures. It is the responsibility of the platform operators to resolve disputes and ensure fair play.
As a player, you need to complete your Know Your Customer (KYC) profile. KYC is important for verifying players. Financial institutions in India have long been conforming to KYC requirements. Online rummy involves money, and KYC helps verify the authenticity of players. KYC requirements also prevent minors from joining the game.
KYC is also needed for regulating finances. Winning is considered as earning. You will be taxed on the money you win.
Risks and responsible gaming
Playing online rummy games on a reputed platform is safe. You need to avoid playing on unregulated and illegal platforms. Check if the platform you are using has a rummy app in the Play Store (Android) or App Store (Apple). For example, if an online rummy website is genuine, you will find the platform's games listed on major app stores.
What would be the consequence of accidentally playing online rummy on an illegal platform? You will attract a fine of ₹200 or a punishment of up to 3 months in prison. Also, remember that it is illegal to play rummy games with money if you are below the age of 18 years.
Online rummy platforms are required to set limits on deposits and withdrawals to prevent addiction among players. This also promotes responsible play.
Conclusion
Online rummy is legal in India with the exception of 8 states. The court rules it as a game of skills. The law gives you the right to organise or play games that let you win real money using your skills and strategies. However, it is important to stay informed on the changes in laws. Make sure you play only on recognised platforms.
KYC requirements and app store listing can be signs that the rummy game platform is legitimate. Play responsibly. Limit the time and money you spend on the game. Contact a legal professional if you are still unsure about the legality of the game in your state.
