Why Rummy Is Not Banned In India

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Why online rummy and other ‘games of skill’ should be banned in India, examines in detail the world of online rummy, which claims many victims every day.

Why Rummy Is Not Banned In India

Why Rummy Is Not Banned In India

Three years ago, Siva*, a technician, started playing online rummy to supplement his income. Before long, he was addicted and began spending more than he earned. What was a fun and easy way to make money soon turned into a nightmare as he racked up millions of dollars in debt. “I had to take out a loan to pay off the debt,” he said. Siva learned his lesson and stopped playing the game.

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Others are not as fortunate as Siva. Covid-19 has put millions out of work, and many are looking for ways to recover quickly or at least make less money. Some choose to play rummy online. Some choose to play the stock market. And, now, with the IPL on, millions are betting millions every day on the fantasy game, which is considered a game of skill and has the best cricketers who trust different fields. Many are not interested in the actual outcome of the game and are more concerned about the performance of their 11 players, who were selected from the 22 that entered the field.

The rise of the Internet has destroyed many homes. The Rummy system allows payment through credit card, debit card and internet banking. Many steal money or digital bank credentials or borrow from family and friends to play the game.

In Andhra Pradesh, a banker stole 1.5 million from his bank to play a game. A college student in Chennai stole Rs 20,000, while a 26-year-old police inspector borrowed Rs 43,000, and remained bankrupt and unable to repay the loan. In another case, a 12-year-old boy spent R90,000 over a three-month period using his parents’ debit card to play pranks.

About half of the people in some southern states have committed suicide because of the internet chaos that took their lives.

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The disaster helped the record that caused the multi-million dollar industry of online rummy in turmoil. Two petitions filed in the Madras High Court earlier this year sought a ban on the sport. They have also called for celebrities like cricketer Virat Kohli and actress Tamannah Bhatia to support them. The riots prompted politicians from Karnataka and Andhra Pradesh to call for a ban on the game.

According to industry watchers’ estimates, the online rummy industry is worth 2,000 million and is expected to be worth 4,500 million by the end of this year. About 6 million players compete in 15 online rummy sites.

The top links are Ace23, Rummy Circle, and Rummy Passion. Over the past few years, these companies have attracted investment from both India and abroad due to the growth the industry has seen over the past few years.

Why Rummy Is Not Banned In India

Ace23 posted revenue of Rs 346 crore and profit of Rs 94 crore in FY19. For FY20, the company said the growth could be up to 60 percent compared to FY19. However, he did not share the FY20 numbers as they are being revised.

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According to data from Tracxn, which tracks startup funding, Ace23, Rummy Circle and Rummy Baazi have raised $17,540,327 from three investors. In 2017, Canada-based Clairvest bought a majority stake in Ace23 for $73.7 million, while Matrix Partners India exited. Sequoia Capital has invested $15 million in Octro, another online gaming platform, in Series A funding.

A 2015 Supreme Court decision declared that online rummy is a game of skill and not a game of chance. Gambling is based on chance and is therefore illegal.

“There is no adequate legal framework for online gambling. The current technology law is not silent on online gaming, only article 87 of the law contains some provisions. As the site grows and generates huge profits, there is a need to diversify the law. to deal with issues arising from it,” said Pavan Duggal, a Supreme Court lawyer who practices internet law.

That message comes thick and fast through SMS, e-mail, WhatsApp, Facebook and other social media, and with advertisements flashed across websites that people visit every day.

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The message is intended to attract players who promise fast money: “Tired of being tied down, playing online rumours, and earning real money in real time.”

Jay Sayta, a lawyer who specializes in gaming policy and regulation, said the communication is misleading and leads people to believe they can solve financial problems by gambling online.

The net is set high and even a small portion of the audience takes the bait, online rummy has players/victims.

Why Rummy Is Not Banned In India

In a judgment dated July 24, the Madurai bench judge of the Madras High Court said, “Not only in the state of Tamil Nadu, but across the country, online games like Rummy Passion are flourishing and are more . ads appear around social media and websites. It seems that these advertisements are mainly aimed at unemployed youth, and convince them to play such games, pretending that they can earn money from their homes.

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He added that the advertisement does not comply with the technology requirements of various Indian laws and leads to increased gambling/gambling, especially among the youth, which creates financial problems for families.

“This Court is not against online gaming, however, this Court’s concern is that there should be a body to regulate and control the legality of gaming, both domestically and internationally,” the ruling said.

Initially, about a dozen online rummy companies joined together to form the Online Rummy Federation (TORF), a non-profit organization. Any rummy company can join it and get the TORF seal as long as it meets the standards set by the organization.

The federation, in an email interview, said its 10 members account for 90 percent of the online rummy market in terms of money and players.

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The public outcry has split the industry, with “self-regulation” sites blaming the wrongdoers. “It’s unfortunate,” said TORF member Bobby Garg, CEO of Rummy Passion. “It’s sad because, because of these companies, people like us who want to do business ethically are affected.”

Garg said that rummy companies can be divided into three categories: those in TORF, non-TORF members but offering skill-based games, and gambling, which is illegal. According to Garg, it’s the third category that causes problems when people fall prey to “those unscrupulous players”.

The truth, however, is that people can easily get involved in a skill-based game and lose a lot of money in the process. Two online rummy players we spoke to confirmed that addiction can be a real problem.

Why Rummy Is Not Banned In India

Prashant Ratan, who lost around Rs 80,000, even sold his farm to continue playing the game, used the Rummy Expert website. The company did not respond to questions sent by Game Technology. However, its website describes a standard protocol that the game is based on following techniques.

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Siva (who was mentioned at the beginning of this story), paid off a million rupees debt, used a website related to TORF.

First, while there is KYC to ensure that under-18 players (under 18) are not eligible, it is impossible to verify whether a player is of age or not. A player can be as young as 9 years old and easily register using their parent/parent ID.

Garg said that TORF members have a simple KYC system which ensures that no young player can enter the platform, using various checks like IP address tracking and address verification. Legal experts, however, say it is unlikely that the players are under the age of registration.

Second, when you join the federation it can offer a reliable rummy system, which nothing else offers. The Federation has no authority to punish offenders other than banning them from membership.

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However, Rummy Passion CEO Garg says suspension is not the solution. His reason: “If you stop, it’s players like us who are willing to follow the rules who will close shop. Others who operate illegally will continue.”

Deepak Gullapalli, CEO, of Ace23, an online rummy site, also blamed illegal sites. “When the information about the number of people killed due to rumors came to light, we decided to look into the matter,” he said. It is clear that there are many illegal sites that operate more like a game of chance than skill and people are losing money because of this.

He added that these sites appear as e-commerce sites. “We are working with government agencies to remove most of them. If there are regulations, it will help in controlling these illegal sites,” said Gullapalli.

Why Rummy Is Not Banned In India

“What we need is a sector

From Traditional Card Games To Digital Sensation: Understanding The Popularity Of Online Rummy In India

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