Gambling, accordingly by the definition of Supreme Court is betting and wagering on games of chances excluding the games which require skills. But wait, isn’t Rummy a game of skill? In rummy, skill set and strategy outweigh the probability of chance. The act of picking up and discarding cards at his own peril entirely depends on the skills and level of understanding by the player.
Quoting the 1996 Judgement by Supreme Court
The expression 'gaming' in the two Acts has to be interpreted in the light of the law laid-down by this Court in the two 1957 cases, wherein it has been authoritatively held that a competition which substantially depends on skill is not gambling. Gaming is the act or practice of gambling on a game of chance. It is staking on chance where chance is the controlling factor. 'Gaming' in the two Acts would, therefore, mean wagering or betting on games of chance. It would not include games of skill like horse racing."
A game of skill, on the other hand - although the element of chance necessarily cannot be entirely eliminated --is one in which success depends principally upon the superior knowledge, training, attention, experience and adroitness of the player. Golf, chess and even Rummy are considered to be games of skill. The Courts have reasoned that there are few games, if any, which consist purely of chance or skill, and as such a game of chance is one in which the element of chance predominates over the element of skill, and a game of skill is one in which the element of skill predominates over the element of chance. It is the dominant element --"skill" or "chance" -- which determines the character of the game."
“The game of rummy is not a game entirely of chance like the 'three-card' game. The 'three-card' game, which goes under different names such as 'flush', 'brag', etc is a game of pure chance. Rummy, on the other hand, requires a certain amount of skill because the fall of the card has to be memorized and there building up of Rummy requires considerable skill in holding and discarding cards.
So, it is pretty evident that skill set of the player determines the result of the game.
Further quoting other judgments in support to our claim that Online Rummy is legal;
Further, the Public Gambling Act, which is the central law on gambling and most subsequent state laws on the subject substantially state that "nothing in this Act shall apply to games of mere skill wherever played". The Rummy games are protected by the Constitution of India under Article 19 (g).