Days after an official ban was imposed in Telangana, on online gambling and betting, several gaming companies based in Delhi and Hyderabad, have approached the state's High Court.
Arguing that they were hosting a 'game of skill', which could not be considered gambling, the companies challenged the state's decision.
According to reports, a division bench directed the state not to take any action against the companies, so long as the petitioners block the players from Telangana, and posted the matter for further hearing.
This comes a week after the state told the Hyderabad High Court that it had decided to ban online gambling, after it received many complaints over the issue.
It claimed that the game had resulted in several people losing a lot of money, and some even attempting suicide.
The state cabinet approved an ordinance last month, that made online gamblers and promoters of these games, liable for prosecution under a new law.
The ordinance proposed to do this, by amending the Gaming Act to include and ban online gambling.
"Soon after the formation of Telangana, the CM had ordered police to crack down on clubs and other places which encourage gambling. But the government received complaints that people are now indulging in online gambling. We want to eliminate gambling in all forms. So the Gaming Act would be amended, banning online gambling. The cyber police will track online gambling and act against violators," Deputy Chief Minister Kadiam Srihari had said.
â€śRummy is not a skill game as it partly involves skill and partly luck or chance. Any person who opens, keeps, operates, uses or permits to be used any common gaming house or online gaming, or conducts or assists in conducting the business of any common gaming house or advances or furnishes money for gaming wherein, shall be punishable,â€ť the ordinance states.