Gaming Report: Online Gaming Regulation Becoming Point of Discussion for the Top Brass of the Country, Maharashtra Navnirman Sena Demands Implementation of 1976 Casino Act & More

During a recent session of the Lok Sabha held on February 8, the Union Minister of Electronics and Information Technology, Ashwini Vaishnaw, urged the central government to implement a national law to regulate the online gaming industry. His sentiment was supported by NCP MLA Rohit Pawar via a Tweet.

In Maharashtra, Manoj Chavan, General Secretary of the Maharashtra Navnirman Sena, has written a letter to the state government requesting the implementation of the 1976 Maharashtra Casinos (Control and Taxation) Act. He believes this could be a source of substantial revenue and job creation, citing the success of casinos in Goa as an example.

In Texas, U.S. Representative Charlie Geren has introduced legislation to amend the state’s constitution and permit the construction of “destination resorts,” including casinos, and allow for sports betting.

Meanwhile, in Kentucky, three Democratic legislators, Derrick Graham, Cherlynn Stevenson, and Rachel Roberts, have recently introduced House Bill 106 to legalize online poker and sports betting. However, to overcome opposition to gambling, State Senator Damon Thayer, the Majority Floor leader, is now working with State Representative Michael Meredith to draft a sports betting-only bill with a better chance of success.

Online Gaming Regulation Becoming Point of Discussion for the Top Brass of the Country

During the recent Lok Sabha session on February 8, the Union Minister of Electronics and Information Technology, Ashwini Vaishnaw, emphasized the need for a national law to regulate the online gaming industry in his address. He stated that the first step towards regulation should be treating apps that allow online games with stakes as intermediaries.

“We as responsible lawmakers should come with a central act, which basically has been drafted in consultation with everybody, and that act should be effectively regulating the online games and online gambling,” Vaishnaw said.

“Already 19 states and Union territories have passed their own laws. Seventeen states have actually amended the Public Gambling Act, 1867, and introduced the online gambling elements within the act,” the minister added.

Vaishnaw answered several questions on the matter asked by members of the house, K. Muraleedharan, Benny Behanan, Raksha Khadse and Rajendra Agrawal.

He informed the house members about various government schemes and policies that would help the growing startup ecosystem. Some of which are listed below:

> Technology Incubation and Development of Entrepreneurs (TIDE 2.0) Scheme

> SAMRIDH Scheme

> Next Generation Incubation Scheme (NGIS)

> Support for International Patent Protection in E&IT (SIP-EIT) Scheme

> GENESIS (Gen-Next Support for Innovative Startups)

Rajendra Agrawal asked the minister about suicides caused by financial losses from online gambling and harassment. Vaishnaw provided the statistics on the number of incidents that were reported at both the state and Union Territory levels under the subcategory of “Abetment to Suicide (Online)” which falls within the category of “Cybercrimes.”

NCP MLA Rohit Pawar tweeted in support of Vaishnaw’s idea saying, “It is a welcome development that the central government has shown its readiness to legislate on online gaming and gambling if there is a consensus among the states. The young generation is getting trapped in this, and it is dangerous. States also need to cooperate with the Center in this regard.”

राज्यांमध्ये एकमत असेल तर ऑनलाईन गेमिंग आणि जुगारासंदर्भात कायदा करण्याची तयारी केंद्र सरकारने दर्शवली, ही स्वागतार्ह बाब आहे. यामध्ये तरुण पिढी मोठ्या प्रमाणात अडकत चालली असून हे घातक आहे. राज्यांनीही याबाबत केंद्राला सहकार्य करण्याची गरज आहे.@CMOMaharashtra @AshwiniVaishnaw pic.twitter.com/i9Tw7Hb4E0

— Rohit Pawar (@RRPSpeaks) February 9, 2023

MNS General Secretary Manoj Chavan in Favors of Implementing 1976 Casinos Act

Manoj Chavan, General Secretary of the MNS, sent a letter to the Maharashtra state government advocating for implementing the 1976 Maharashtra Casinos (Control and Taxation) Act. He saw this as a means to generate substantial revenue and provide job opportunities for the state, using the success of casinos in Goa as a reference.

Chavan expressed his frustration that the act remains unenforced and the rules have yet to be established. He also inquired about the status of the established study group to observe other states with casinos. He highlighted the state’s inability to overlook the potential financial benefits from casinos, citing a study that estimated revenue of $1.1 Billion and $308 million in tax revenue from 28% GST.

Jay Sayta, a technology and gaming lawyer, filed a Public Interest Litigation in 2015 regarding the non-functional act. He believes implementing the act would solve the government’s financial problems and reduce illegal activities. FICCI estimated that the legalization of sports betting alone would result in a government revenue increase of ₹19,000 Crores.

Sayta stated, “Enforcement of the Casinos Act will help eliminate the financial woes of the government and provide citizens with a legitimate avenue of entertainment.”

Texas Lawmaker Introduces Legislation to Bring Casinos to State

On Monday, Texas-based lawmaker Charlie Geren introduced legislation to change the state’s constitution to permit the construction of casinos and the legalization of sports betting. The casino industry has voiced its support for this effort. During the state’s legislative session, which will last until May 29, Geren’s legislation must be supported by two-thirds of the house. If approved, it will be put to the vote by the state’s citizens in November.

In the legislation, Geren has envisioned that “destination resorts” be established in Texas. Such resorts will not just be casinos but “fabulous hotels, restaurants, showrooms, and retail. That creates jobs, but it generates a lot of money for the state.”

Geren’s efforts are being backed by the Sands Corporation. The company has funded the Texas Destination Resort Alliance, a coalition formed to lobby for bringing in “world-class gaming, entertainment, and restaurants Texans already enjoy in other states into our own backyards, creating billions in new revenue for our state to continue to make Texas the greatest state to live, work, and raise a family.”

Spokesperson of the Alliance, Matt Hirsch said – “These destination resorts will bring massive economic benefits to the state, including tens of thousands of jobs. We look forward to working alongside the Texas legislature and ultimately gaining the support of Texans to make destination resorts a reality.”

Many card rooms have been operational in Texas for over a decade. Still, most of them operate under a legal loophole that permits private clubs to exist and host poker games as long as the operators do not charge rake. If Geren’s legislation is approved, such cardrooms will come under the legal spanner.

Kentucky’s Gambling Expansion Measure to Drop Online Poker & Focus on Sports Betting

On January 5, three Democratic legislators, Derrick Graham, Cherlynn Stevenson, and Rachel Roberts, introduced House Bill 106 in the U.S. state of Kentucky, seeking wide changes to the state’s gambling laws, including introducing both retail and online/ mobile sports betting, daily fantasy sports and online poker.

Latest updates indicate that online poker may be dropped from this proposal, with the focus remaining largely on sports betting. According to reports from the Bluegrass State, state Senator Damon Thayer, the Majority Floor leader, is working in tandem with State Representative Michael Meredith to formulate a sports-betting-only bill that stands a stronger chance to sidestep anti-gambling opposition.

Thayer told local news media that the legislators are “taking out some of the other extraneous things like fantasy sports and online poker that were in the previous bill.” He added, “We’re a sports-crazy state. We love our sports. We have a long history and tradition of betting on horses in Kentucky. And I see [sports betting] as an extension of that, and I think most people do too.”

The Kentucky house had rejected a sports-betting bill in 2022, which is why Thayer and other sports-betting supporters have ironed out a narrower set of provisions for the proposed legislation.