Font size:
Print
CRACKDOWN ON ONLINE GAMBLING AND CHANCE GAMES IN TAMIL NADU
Why in the News?
Tamil Nadu Online Gaming Authority (TNOGA) plans strict action against online gambling and gaming advertisers in the state.
More on News
- The Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022 aims to ban online gambling, chance-based gaming, and betting.
- Violators are liable for imprisonment which may extend to 3 months or fine amount which may extend to ₹5,000 or both.
- The Act also bars financial institutions/payment gateways from processing transactions related to online gambling or chance-based gaming.
Games of Chance Vs Games of Skill:
Online Gambling Laws under State Subject
- Online gambling in India is primarily regulated by state laws, with the legal landscape varying across different states.
- While there is no comprehensive national law governing online gambling, states like Telangana, Andhra Pradesh, etc. have enacted laws to regulate online gambling and chance-based games within their jurisdictions.
- The central law governing gambling is the Public Gambling Act, 1867, deemed outdated and insufficient to address challenges from digital and online gaming.
- Betting and Gambling is listed under the State List in the Seventh Schedule of the Indian Constitution.
Why has online gaming come under such an ambit?
- Concerns over addiction and social harm: Particularly young people, becoming addicted to online gaming and gambling, leading to financial losses, debt, and even suicide attempts.
- Lack of regulation and oversight: The existing Public Gambling Act of 1867 is considered outdated and ill-equipped to handle the challenges posed by online gaming and gambling.
- Blurred lines between games of skill and chance: The legal distinction between games of skill (which are generally permitted) and games of chance (which are considered gambling) is not always clear, leading to ambiguity and legal challenges.
- Concerns over data privacy and national security: This has raised broader questions about the need for regulation and oversight of online gaming platforms, especially those with international connections.
- Money Laundering Concerns: Online gaming and gambling in India have been linked to instances of money laundering and illicit fund transfers abroad.
Supreme Court Judgments
- State of Andhra Pradesh v. K. Satyanarayana (1968): The Supreme Court ruled that rummy is a game of skill, not chance, even though it involves an element of chance in shuffling and dealing the cards.
- Skill Lotto Solutions Pvt. Ltd. v. Union of India (2020): The Supreme Court upheld that lottery, betting, and gambling can be subjected to tax, as they fall under the category of “actionable claims” under the GST law.
Conclusion
- The ban on online gambling and games of chance in multiple Indian states reflects a proactive stance against the associated risks.
- Central laws are imperative to establish uniform regulations and ensure responsible gaming practices nationwide, promoting consumer protection and industry transparency.
