CHENNAI: Playing rummy, poker or any other game of chance involving money or other stakes online has become illegal in Tamil Nadu as Governor R N Ravi has promulgated an ordinance to ban such games. As per the ordinance, the State government will also set up an Online Gaming Authority to regulate online games and all local operators must get a certificate of registration to offer such services.
Raj Bhavan sources said the Governor gave his assent to the ordinance on October 1 immediately after receiving the file from the State government considering the urgency of the matter.
Explaining the rationale behind the ban, the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Ordinance, 2022, says, “Gambling by means of electronic communication is available at all hours from any place and to any person who is able to access a device capable of remote communication.
Online gambling often involves players competing with non-human or virtual participants that are controlled by a variety of computer algorithms. The degree of chance or skill involved in such remote games cannot be assessed independently of the relevant algorithm or program. Lastly, remote gambling often takes place by means of virtual currencies and tokens by bypassing the state’s financial surveillance.”
The ordinance also prohibits non-local online game providers from offering online gambling services or games of chance involving money or other stakes. It also makes it mandatory for such non-local entities to inform customers that online gambling is prohibited in TN and that playing such games while being physically present in Tamil Nadu is illegal. Such providers must also check the details of customers to confirm that they are not physically present in the State while availing of services.
Ex-bureaucrat not below rank of CS to head Online Gaming Authority
Violators will face imprisonment for a term which may extend up to three months or a fine of Rs 5,000. Similarly, those who place advertisements for online gambling will be punished with imprisonment for a year or face a penalty of Rs 5 lakh or both.
Those who offer online rummy or poker service will be punished with a jail term of up to three years or a fine of up to Rs 10 lakh or both. The Online Gaming Authority will be headed by a former bureaucrat, not below the rank of chief secretary. A police officer not below the rank of inspector general, an expert in information technology, an eminent psychologist, and an expert in the field of online gaming will be other members of the panel.
The authority will oversee the functioning of companies that offer online games in Tamil Nadu, will collect and maintain information and data on such firms and will also advise the government on all matters pertaining to online gaming. It will also have the power of a civil court to try suits under the Code of Civil Procedure, 1908.
The government will also set up an Appellate Authority under a retired high court judge or a person qualified to be appointed as HC judge to hear appeals filed by any person aggrieved with action initiated as per the ordinance.
The State government has come up with the ordinance based on the recommendations given by a committee headed by retired HC Judge Justice K Chandru. Earlier, the Madras High Court struck down Part II of the Tamil Nadu Gaming & Police Laws (Amendment) Act, 2021, which amended the Tamil Nadu Gaming Act, 1930, to ban the playing of games such as rummy and poker on cyberspace with stakes, by declaring it as unconstitutional.
The online gaming industry is worth USD 2.2bn and is expected to reach $7bn by 2026. The number of gamers in India is close to 400 million and is expected to reach 700 million by 2025.
3-month jail for violators
Violators will face a jail term of up to 3 months or a Rs 5,000 fine or both. Meanwhile, two people died by suicide in the past three days in TN after losing money in online gambling