Tamil Nadu Passes Bill Banning Online Gambling Despite New IT Rules, Wants to Prohibit Online Gaming Too

Hours after the Tamil Nadu state assembly, led by the DMK government moved a fresh resolution against Governor RN Ravi for allegedly not clearing Bills passed by the State Assembly and unanimously passed the same, the latter has accorded his assent to the Bill banning online gambling in Tamil Nadu.

The development came in on Monday afternoon after sources from Tamil Nadu Raj Bhavan confirmed that the governor has given his assent to the Tamil Nadu Prohibition of Online Gambling & Regulation of Online Games Bill, 2022, which was sent to him by the assembly for the second time.

The state government now stands firm and says it will not revoke the ban on online gaming despite the new amendments to the IT rules notified by the Centre last week.

The Centre had notified the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023, on Thursday, which is an amendment to the existing IT Rules of 2021. The notification amends the existing rules and adds provisions. The additional portions provide the regulatory framework for online gaming and misinformation.

However, the head of Tamil Nadu’s online gaming panel has reportedly called for a complete ban of such games in the state.
The head of the panel, Justice K Chandru, a retired Madras High Court judge, is of the opinion that a blanket ban — and not regulation — is the solution.

“These rules (the notification of gaming rules) do not change Tamil Nadu’s stance on online gaming. We don’t see any other way out except banning. Tamil Nadu will follow its own legislation,” he told The Economic Times.

Chandru says regulation will not help as it will not stop people from playing online games.

This sets the ground for a potential legal clash between the Tamil Nadu and central governments, with online gaming intermediaries in the state more likely than not to approach courts against the ban.

The DMK-led state government had passed the bill last year and send it to Ravi for his approval. However, the governor returned the bill after four months to the assembly questioning the state’s right to pass the bill.

The Bill was passed on October 19, 2022 and sent for the Governor’s assent on October 26, 2022. On November 23, 2022, the Governor sought clarification, which was provided. However, 131 days later, on March 6, 2023, Ravi returned the bill seeking further clarification.

As per the Bill, no supplier of online games can offer online gambling services, permit the gaming of any online gaming that would require the use of cash or other risks, or permit the gaming of any online game that violates the rules.