TN Governor signs bill banning online gambling; federation to challenge the law

The All India Gaming Federation said it would challenge the law

Two weeks after the Tamil Nadu Assembly re-enacted the bill, Governor R N Ravi on Monday signed into law the legislation banning online gambling and regulating online games in the state, which will be published in the gazette immediately.

The Governor gave his assent to the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Bill, 2022, on Monday afternoon, hours after the Assembly adopted a resolution against his action of sitting on several legislations.

“As a positive reaction to the resolution, the Governor has signed the bill into law. The new law will be published in the gazette immediately,” Chief Minister M K Stalin told the Assembly.

Read | Tamil Nadu Governor Ravi gets legal notice over his comments on Kudankulam protest

The Bill was sent to the Raj Bhavan in the last week of March after it was re-enacted by the Assembly following the Governor returning it on March 6 citing the state’s lack of competence in drafting such legislation.

The assent by the Governor to the bill came weeks after the Union Government told the Parliament that states possessed the power to draft laws on the subject. Union Minister for Broadcasting Anurag Thakur had on March 21 said the state governments possess the power to pass legislation on the issue as it comes under Section 34 of the 7th schedule of the Constitution.

In a statement, the All India Gaming Federation said it would challenge the new law in a court of law.

“As the oldest and largest industry body, representing the most number of Indian MSME start-ups, we will challenge the constitutionality of the law, once the effective date is notified and have full faith that our judicial system will uphold the fundamental rights of the gaming platforms and their users,” Ronald Landers, CEO, AIGF, said.

He argued that the law completely misunderstands technology and prohibits random number generators, which are an integral part of fairness for online gaming. “This is disappointing as it disregards the six decades of established legal jurisprudence and also the recent judgment of the Madras HC which struck down a similar law,” Landers said.

The Tamil Nadu government had criticized the Governor for not giving his assent to the bill for four months despite 44 people ending their lives after losing money to online gambling. While re-introducing the bill on March 23, Chief Minister M K Stalin said state governments have every right to draft laws to protect people and their welfare.

The bill, drafted following suggestions from a panel headed by Justice (retired) K Chandru, says no online games provider shall provide online gambling service or allow the playing of any online game of chance specified with money or other stakes or playing of any other online game in contravention of the regulations, in any form.

“No person shall make or cause to make any advertisement in any media including electronic means of communication, in the State, which directly or indirectly promotes or induces any person to indulge in online gambling or play any online game of chance specified in the Schedule, with money or other stakes,” the Bill read.