© Provided by The Financial Express The anti-online gambling legislation is set to come into force in Tamil Nadu following the notification, said the state Chief Minister, M K Stalin.
One can afford to say that it has been an action packed week for the online gaming industry. From the Ministry of Electronics and Information Technology (MeitY) rolling out new rules for online gaming to the recent ban on online gambling, including online rummy and poker imposed by Tamil Nadu government. “The law completely misunderstands technology and prohibits random number generators, which are an integral part of fairness for online gaming,” Roland Landers, CEO, All India Gaming Federation (AIGF) told Brandwagon Online.
It is believed that R N Ravi, governor, Tamil Nadu has given his assent to the ‘Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games’ Bill, banning online gambling, including online rummy and poker, which was adopted in March by the state Assembly for a second time. The anti-online gambling legislation is set to come into force in Tamil Nadu following the notification, said the state Chief Minister, M K Stalin.
Advertisement in any form promoting online gambling or playing of online games of chance (rummy and poker) with money or other stakes is prohibited in the state, according to the legislation. Furthermore, those violating the provision on advertisement for promotion or inducing people to play online gambling/games of chance will face punishment with imprisonment up to one year or with fine, which may extend to Rs 5 lakh, or both. “While we anticipated this law to be passed, we have faith that the eventual judicial determination of online rummy and poker as games of skill will put this issue to bed, Siddharth Sharma, VP Business Strategy, Head Digital Works, said.
Meanwhile, last week, MeitY in its new rules released for online gaming prohibits any game that involves betting and wagering and entail a framework of multiple self-regulatory organisations (SROs). ‘Online games that collect money will need to complete KYC norms and are involved in wagering or betting will fall foul of new online gaming rules’, Rajeev Chandrasekhar, Minister of State for Electronics and IT said. Permissibility will be determined with the simple principle of whether wagering is involved and “if wagering is involved, the SRO will be in a position to say that those online games are not permissible,” Chandrasekhar explained.
This does not, however, means that real-money games will be completely banned. An SRO can allow an online real-money gaming company to operate upon receiving an application. The SRO will have to declare it as a permissible game for a period not exceeding three months based on the information provided by them. The body can then carry out further inquiry and take a decision accordingly with regard to certification. The SRO may suspend or revoke verification if satisfied that online games verified by it are not in conformity with the rules. The rules further state that SROs need to maintain a list of games verified by it and its members. “The approach in the legislature is opposite to the light touch approach of SRO taken by Meity to regulate the sector. The role of online gaming self-regulatory body, as introduced by Meity under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 has been deemed redundant in Tamil Nadu as the State Government will be administering a separate licensing regime,”Asish Philip Abraham, partner, Lakshmikumaran & Sridharan.
Industry experts opine that there is no requirement for separate state laws, post the news rules by MeitY. “Why a separate law is required at the state government level is not very clear and is likely to lead to confusion, unnecessary litigation and instability in policy making. It will also cause duplication of efforts for startups, which form a large part of the online gaming ecosystem,” Ranjana Adhikari, Partner, IndusLaw.
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