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Issues Involved:
1. Whether games of skill are considered "business activity" protected under Article 19(1)(g) of the Constitution of India. 2. Whether the Games of Rummy, Chess, Golf, Poker, Bridge, and Snooker are games of skills. 3. Whether there is any restriction on playing the aforementioned games of skill with stakes on the websites making profit. 4. Whether wagering and betting on games of skill make the activity "Gambling". 5. Whether there can be restriction on advertising and promoting the website offering the aforesaid games of skill. 6. Can the banks refuse to provide normal banking services to the websites once it is determined that the Company is conducting normal business activities? 7. Can the Company or its Directors, agents, players etc. be held liable under any penal laws as long as they are only offering games of skill which are declared to be normal business activities? Summary: Issue 1: Whether games of skill are considered "business activity" protected under Article 19(1)(g) of the Constitution of India. A stake in a game of skill between players does not amount to gambling as per the decision of the Apex Court. Earnings from playing such games by any professional would be a professional or a business activity protected under Article 19(1)(g) of the Constitution of India when played in the physical form. However, online games conducted by gaming houses or websites are illegal in States where gambling is prohibited. Issue 2: Whether the Games of Rummy, Chess, Golf, Poker, Bridge, and Snooker are games of skills. The games of Rummy, Chess, Golf, Bridge, and Billiards are categorically opined as games of skill, with the element of chance being negligible or insignificant. Poker, however, cannot be accepted as a game of skill and is more in the form of gambling. Issue 3: Whether there is any restriction on playing the aforementioned games of skill with stakes on the websites making profit. There is no restriction on playing the aforementioned games of skill with stakes on the website making profit as the same does not amount to gambling. However, online gaming sites offering prize money and partaking a slice of the winning hand are illegal in States which prohibit gambling. Issue 4: Whether wagering and betting on games of skill make the activity "Gambling". Wagering or betting on a game of skill does not come within the definition of gaming or gambling. However, online gaming sites offering prize money and partaking a slice of the winning hand are considered illegal. Issue 5: Whether there can be restriction on advertising and promoting the website offering the aforesaid games of skill. Advertising or promoting websites offering online games for prize money and winning through betting confirms that these sites are virtual Casinos, which are illegal. Sponsors advertising or promoting their own product on such sites also attract penal consequences. Issue 6: Can the banks refuse to provide normal banking services to the websites once it is determined that the Company is conducting normal business activities? Banks can refuse to provide normal banking services to websites offering online gaming involving money as such activities cannot be held to be legal. Payment gateways for gambling are blocked by the Reserve Bank of India as per the Information Technology Rules of 2011. Issue 7: Can the Company or its Directors, agents, players etc. be held liable under any penal laws as long as they are only offering games of skill which are declared to be normal business activities? Since online gaming cannot be held to be legal in States which prohibit gambling, the Company and its directors, agents, players, are liable to penal consequences. Conclusion: The petition stands disposed of with all queries answered. The Court emphasized the need for regulation in the online gaming industry to prevent illegal activities and tax evasion. The file is consigned to the Record Room.
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