Discussions over online gaming regulations have now begun in Tamil Nadu after the number of suicides committed as a result of heavy losses on online Rummy from 2020 increased to 20.
So far, eight deaths have been recorded in Tirupur, Namakkal, and Salem, seven in Chennai and its suburbs, four in Vellore, Tirupattur, and Dharmapuri, and one in Tuticorin.
A group led by Madras High Court former Judge, Justice K Chandru, recently submitted a report to the state government, suggesting the introduction of laws for a complete ban on Rummy and all other online card games.
However, even if online card games are banned in Tamil Nadu, residents can still access these games outside the state. Hence, the committee believes that other states, especially those whose legislations were rejected by the courts, could go forward to the Union government under Article 252 to activate a general ban on online card games. Not too long ago, Karnataka, Kerala, and Madras high courts rejected amendments to the laws prohibiting online betting and gaming in the states.
As per reports, Tamil Nadu has been looking at the different challenges faced by many states that have tried to ban or regulate online games. According to one of the officials involved in the process, the TN government has taken note of the Madras high court judgment in regards to the lack of empirical evidence or stakeholders’ consultation. Another thing considered is the difference between games of chance and skill games. “A new legislation is under preparation and it should legally be sustainable and feasible for implementation,” the official said.
Incidentally, in the 47th GST meeting held in June, the council had ordered a group of ministers on Casino, Race Course, and Online Gaming to evaluate the issues based on additional inputs from states and submit a report within a short timeframe. Earlier on, the Group of Ministers recommended that the GST rate be increased from 18% to 28%.
More information from official sources revealed that a segment of the Tamil Nadu government stood against the total ban of online gaming due to the revenue the activity fetched in the state. Discussions on the prohibition of specific online games and regulations of approved skill games have continued. The discussions also include the category of players to be accepted, hours of play, age restrictions, and more.
Although online gaming has been popular in Tamil Nadu for a while, it peaked in 2020. During the COVID-19 lockdown, many new online casinos opened up, attracting players with their Indian native game offerings and superb bonuses. Many online sportsbooks also opened up, providing thousands of betting markets and great odds on Cricket and many other sports.
Most of the online iGaming platforms were mobile compatible. Hence, TN residents like many other Indians found it easy to access them and use their services. The platforms also use local Indian banking processors like Netbanking and UPI which do not only make payments convenient for players but also easy to estimate the amount of money that is exchanged between punters and these platforms.
Considering the high volume and revenue potential that the iGaming market can yield, many stakeholders opine that designing a solid framework to regulate online betting and gaming will be better than prohibiting the activities completely.
