CHENNAI: Tamil Nadu government, by promulgating an ordinance, has banned online gambling and playing of online games of chance, rummy and poker with money or other stakes.
Tamil Nadu governor R N Ravi gave assent to the ordinance on October 1, the day when the government forwarded the draft approved by the cabinet last month.
The state government was under tremendous pressure from various political parties to ban online gambling and similar games of chance after several instances of suicides were reported from across the state.
Non-local online game providers will have to geo-block the user in Tamil Nadu based on the location, while the government will establish an authority to regulate online games.
Online gambling affects mental health, says govt
The state government notified the ordinance on October 3. “No online games provider shall provide online gambling service or allow playing of any online game of chance specified in the Schedule (Rummy and Poker), with money or other stakes or playing of any other online game in contravention of the regulations, in any form,” the ordinance said.
An explanatory statement of the state government said online gambling considerably affected mental health of the people and left many families in financial distress and would affect the long-term prospects of the state and its population.
As many as 10,708 out of 10,735 mails received by the government sought total ban on online games.
Indulging in online gambling or playing Rummy and Poker with money or other stakes, will be punishable with imprisonment for a term up to three months or with fine up to ₹5,000 or both. The service provider will be punished with imprisonment for a term up to three years or with fine up to Rs 10 lakh or both.
The jail term and the fine increases for repeat offences. No court shall take cognizance of any offence punishable under the ordinance.
It bans advertisements that directly or indirectly promotes or induces people to indulge in online gambling, violation of which will be punished with imprisonment for a term up to one year or with fine up to Rs 5 lakh or both.
No bank or financial institution or payment gateway provider shall engage in any transaction or authorisation of funds towards payment for online gambling or online game of chance, Rummy and Poker.
The online gaming authority led by a retired officer in the rank of chief secretary, will have the same powers as are vested with a civil court, for regulation of online games.
It includes issuing certificates of registration to local online game providers and identifying online games of chance and recommending to the government for ban, among other things. “On and from the appointed day, no local online games provider shall provide any service for the conduct of any online game except in accordance with the certificate of registration duly obtained from the authority,” the ordinance said.
The government will also set up an appellate authority led by a retired judge of the high court or qualified to be a judge of a high court.
No non-local online games provider will be deemed to have violated the law if he has exercised due diligence or has provided geo-blocking in the state for the purpose.
The provider should take all other “reasonably practicable” measures to ensure that no person physically present in the state could have access to online gambling service or to online games of chance that are prohibited. Violation of it will lead to blocking access to persons in the state by recommending to the Central government to exercise the power under Section 69-A of the IT Act, 2000.