Online gambling ban in TN: Unfortunate & disappointing -E-Gaming Federation

Tamil Nadu Governor RN Ravi yesterday (April 10, 2023) gave the go ahead to the state’s law banning online gambling as well as regulation of online games.

As per media reports, following the recommendations of retired Judge K Chandru-led committee, an ordinance banning online gambling was promulgated by the Tamil Nadu Governor on October 1, 2022. The Tamil Nadu Assembly passed a Bill on October 19 to replace the Ordinance, which was sent to the Governor.

Reacting to this development, Malay Kumar Shukla, Secretary, E-Gaming Federation, said, “It is extremely unfortunate and a disappointing development for the online gaming industry. The legislation passed by the TN legislature incorrectly categorises Rummy and Poker as a game of chance. The legal jurisprudence in this regard set by the Hon’ble Supreme Court of India and several High Courts, clearly stipulates that games like Poker and Rummy are games of skill. In its detailed judgment in August 2021, the Hon’ble High Court of Madras also reaffirmed that the preponderance test for distinguishing between games of skill and games of chance needs to be applied. Games of skill are protected under Article 19(1)(g) and are different from gambling activities.”

Continuing further, Shukla said, “The fact that Rummy and Poker games are listed for prohibition as games of chance or gambling under this new legislation runs contrary to the decision of the Hon’ble Madras High Court and the Hon’ble Supreme Court. The online gaming industry has always been unequivocal in its readiness for a progressive regulatory framework by the government. We are examining the legislation and shall be taking appropriate action based on legal advice in due course of time.”

It may be noted here that on April 6, 2023, the Ministry of Information and Broadcasting (MIB) had issued a fresh Advisory warning against advertisements of online betting and gambling. Advertisements of betting platforms in violation of Indian laws, reiterated the Ministry and advised all media formats, including newspapers, television channels, and online news publishers, and showed specific examples where such advertisements have appeared in the media in recent times, to refrain from promoting betting platforms.

The Ministry had earlier issued Advisories in the months of June and October, 2022 stating that betting and gambling are illegal, and hence direct or surrogate advertisements of such activities falls foul of the Consumer Protection Act, 2019, the Press Council Act 1978, Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, and other relevant statutes.