The Government of Tamil Nadu on 3rd October 2022, has notified the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Ordinance, 2022. The Ordinance prohibits online gambling and online games of chance played for money or other stakes, including Rummy and Poker. The Ordinance defines online gambling as wagering or betting and includes playing online games of chance for money or other stakes. Other stakes may include virtual credits, tokens, objects, or anything similar purchased in a game. Online gambling is prohibited.
The Ordinance requires local online game providers to obtain a certificate of registration from the TN Online Gaming Authority for providing any gaming service. Failure to register is punishable with three years of imprisonment, a fine of Rs 10 lakh, or both. Similar gaming services that are provided physically do not require such registration.
Non-local game providers include those game providers who do not operate in the state, or whose services are not accessible by customers in Tamil Nadu. Game providers based outside Tamil Nadu are required to restrict access to prohibited games to users located in the state or exercise due diligence. Due diligence includes: (i) entering into a contract with customers on the condition that they will not play the game if physically present in the state, (ii) informing prospective customers that the state prohibits online gambling and certain online games, (iii) collecting personal details of customers to establish their physical presence in the state, (iv) obtaining data that indicates that a customer was not physically in the state when the account was opened, and throughout the period when the service was provided, and (v) ensure that persons physically present in the state do not have access to prohibited games.
