Further, the State government submitted that the High Court “gravely erred” in applying the test of proportionality by striking the law on account of violation of Article 19.
The Amendment Act enacted on October 5, 2021 had banned wagering or betting, including in the form of tokens valued in terms of money paid before or after the issue of the same. It had also banned virtual currency and electronic transfer of funds in connection with any game of chance.
The maximum punishment for violations under the Amendment Act was imprisonment for three years and a penalty upto ₹1 lakh.
The petitions challenging the Act before the High Court had claimed that games of skill, irrespective of whether they involve the risk of losing money, do not amount to wagering or betting and thus, cannot be prohibited.
It was argued that the State lacked legislative authority to pass the Act, which was contrary to precedent laid down by the apex court, and was violative of Articles 14, 19(1)(g), 21 and 301 of the Constitution.
The High Court had then proceeded to strike down Sections 2, 3, 6, 8 and 9 of the Act.
Source: Barandbench
