Tamil Nadu Notifies Online Gaming Act Enforcing Ban on All Real-Money Games in the State

It`s official. Playing or offering poker or rummy for real money is a punishable offense in Tamil Nadu. Formalizing the gaming ban in the state, the Tamil Nadu government enforced the Tamil Nadu Prohibition of Online Gambling & Regulation of Online Games Bill 2022 on Friday, April 21, by notifying the rules on the official gazette.

The online gaming ban is the second attempt by the state government to curb real money games played in cyberspace. The state assembly approved the Bill on March 23, and Governor RN Ravi approved the legislation on April 10.

Chief Minister MK Stalin had initially stated that the Bill would be gazetted the same day. However, the Bill was finally notified on April 21. With this, the government has officially banned all online games played with stakes, especially those defined as “games of chance,” including rummy and poker.

While offering or playing such games is legally prohibited, the state has also banned all forms of advertising to promote them. According to statements made by AIGF CEO Roland Landers and other gaming operators, a petition against the gaming ban will be filed in the High Court soon.

The notification of the Bill mandates every online gaming provider offering any form of online games in Tamil Nadu before April 21 to apply for and obtain a certificate of registration from the state gaming authority to operate in the state. Such providers have to apply within 30 days from the grant of the certificate of registration to the gaming authority on payment of a fee of ₹1 Lakhs.

The legislation provides for a five-member gaming authority led by a retired bureaucrat of the rank of chief secretary (or higher) to issue show cause notice to any online gaming provider that fails to comply with the provisions of the Bill.

The ban comes from the state’s concerns about the rising number of suicides by people losing money in online games. Popular actor and politician Sarathkumar Ramanathan recently joined the voices demanding a ban on online games. Ramanathan, the founder of the Samatthu People’s Party, urged the Union government to ban all types of gambling, including online rummy.

What the Gaming Providers Need to Do

The four-page application requires gaming operators to fill in details of game safety, user authentication, addiction blocking availability, and notification interval. The operators must also explain their gaming apps’ embedded technologies or methods, such as details of artificial intelligence, BOTs under gaming, and RNG used.

Online rummy and poker operators will be required to implement geo-blocking technology to block users from Tamil Nadu from accessing all real-money rummy and poker offerings. They will further be required to enforce due diligence to restrict users from Tamil Nadu from playing the blocked games.

Anyone found flouting the rules will be liable for a term of imprisonment of up to three years or a fine of ₹10 Lakhs or more.

Role of the State Gaming Authority

The five-member gaming authority will have the following powers and responsibilities:

> To regulate all forms of online games

> Issue certificates to online game providers (including games not involving stakes)

> Identifying online games of chance for being banned

> Overseeing the operations of online gaming providers in the state

> Issue show cause notice to any online gaming provider failing to comply with the provisions of the Tamil Nadu Prohibition of Online Gambling & Regulation of Online Games Bill 2022

> Collect and maintain information and data on activities of online gaming provides

> Resolve grievances and complaints relating to online game providers

> Form regulations on time limits, monetary limits, and age restrictions for online games

> Submit an annual report to the state government on the outcome of regulatory measures undertaken, plans for the year ahead, number of certificates, and show-cause notices by October 30 every year

Tamil Nadu`s Crusade to Ban Online Gaming

The DMK-led state government was the first to enforce the Tamil Nadu Gaming and Police Laws (Amendment) Act 2021 in February 2021. However, the ban was legally challenged by online gaming operators in court. On August 3, 2021, the Madras High Court struck down the legislation, calling it “unconstitutional.”

Keen to enforce a ban on online games, the state government filed an appeal against the High Court’s ruling in the Apex Court in November 2021. At the same time, the government brought in a second online gaming legislation, basis the recommendations of a committee headed by retired Justice K Chandru.

On October 19, 2022, the state assembly passed the Bill, which was forwarded to Governor RN Ravi for approval on October 26. On November 23, the Governor requested clarification, which was provided. However, 131 days later, on March 6, the Bill was returned by Ravi, citing concerns about the constitutional validity of the law.

On March 23, Chief Minister MK Stalin tabled the all-new “The Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Bill” before the state legislative assembly. The assembly approved and readopted the Bill for the second time and sent it to Governor RN Ravi for approval.

The Bill was approved by the state assembly on March 23, and succumbing to mounting political pressure, Governor RN Ravi finally approved the legislation on April 10.

Despite the Governor’s approval, several gaming operators were still accepting players from Tamil Nadu. Now that the Bills has been notified into Rules, online poker and rummy operators will have to geo-fence players from Tamil Nadu, blocking them from playing the games offered.

This is a developing story. Keep following PokerGuru for more updates!