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26 September 2012

A Delhi court ruled that online games involving real money are illegal, are a substitute for traditional casinos, and are not entitled to protection under the constitution. Banks have the option to deny normal services to websites offering such games, and payment gateways for online gambling are blocked by RBI as per IT Rules 2011.

The judgement came on the February 2012 petition of the director of an internet start-up which was planning to launch a social gaming website offering betting on skill-based games like Chess, Billiards, Bridge and Snooker. The company was planning to charge a commission of under five per cent on the winning hand but it did not plan to bet on any of the players.

The court however ruled that the skill needed for online games is different from that needed for physical games and therefore only physical skill-games can be played for real stakes. [PTI]