Tamil Nadu Assembly passes Bill banning online gambling

The Tamil Nadu Assembly, on Wednesday, passed a Bill to ban online gambling and regulate online games in the state, based on recommendations by a committee headed by Justice (retired) K Chandru.

The Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Bill, 2022, replaces an ordinance approved by the state cabinet on September 26 and promulgated on October 1, by Governor R N Ravi. The state government decided to bring a law to ban online gambling following the deaths of at least 22 people, who ended their lives after losing money while playing the games.

Moving the Bill, law minister S Raghupathy said no online games provider shall provide services in contravention of the regulations in any form—be it online gambling service, or allowing to virtually play any game of chance with money or other stakes.

“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.

It also added that no bank, financial institution or payment gateway provider shall engage in any transaction or authorization of funds towards payment for any online gambling or any online game of chance specified in the Schedule.

The legislation is based on inputs, received from the school education department, on the effects of online rummy on students, and opinion received from people and other stakeholders.

The E-gaming Federation, however, has decided to challenge the law before the judiciary.

“After examining the ordinance, we have decided to file a lawsuit as it categorises Rummy and Poker as games of chance. This is in dissonance with multiple legal judicial pronouncements including the recent judgment by the Madras High Court, which has clearly segregated games of skill and chance,” said Sameer Barde, CEO of E-Gaming Federation.

The committee, headed by Justice Chandru, looked into the financial losses incurred while playing the game and suicidal tendencies of people who lose money, and analysed the ill-effects of online rummy through data, and the impact of the advertisements on people to play the game.

This is the second time that Tamil Nadu is acting against online rummy; the AIADMK government had in 2021 imposed a ban through a law which was struck down by the Madras High Court on the grounds that the legislation was drafted without enough proof and reasons.