Supreme Court rejects Karnataka's challenge to order quashing FIR against DM Gaming for Poker club

The Supreme Court recently dismissed a plea by the Karnataka government against an order quashing criminal proceedings against DM Gaming for allegedly running a gambling house under the guise of a poker club [State of Karnataka v DM Gaming Pvt Ltd & Ors]..A Bench of Justices MM Sundresh and Satish Chandra Sharma upheld the Karnataka High Court order quashing the case.However, the Bench said that the question of law about whether poker is a game of skill or chance is left open. "We do not find any ground to interfere with the impugned order passed by the High Court. However, the question of law is left open," Court ordered..The case began when a complaint was filed on June 5, 2024 alleging that Golden Ace Poker Room, run by DM Gaming Pvt Ltd in Bengaluru, was conducting gambling under the guise of poker. The Central Crime Branch (CCB) registered a case under Sections 79, 80, and 103 of the Karnataka Police Act and raided the premises, seizing ₹5.46 lakh, poker chips and cards. Several individuals including director Mukesh V Chawla were arrested. DM Gaming moved the Karnataka High Court, which quashed the FIR, ruling that poker is a game of skill. It held that police could not interfere with lawful play. .The State challenged this before the Supreme Court, arguing that poker is a game of chance similar to Teen Patti and therefore, amounts to gambling under Indian law.Further, the Karnataka government alleged that the company was targeting young men and students through inducements, that the operations extended beyond permissible hours, and that the business model itself was structured to generate illegal profits by promoting excessive gambling..However, the Supreme Court did not adjudicate on these arguments..Additional Advocate General Prateet Chadha and Advocate DL Chidananda appeared for the State of Karnataka.Advocates Azra Rehman, Rohit Sharma, Vanya Gupta and Zakir Rehman appeared for the respondents. .[Read Order]