Tamil Nadu: New online gambling law imposes heavy fines, imprisonment


The Tamil Nadu government officially notified the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Bill on Monday, after it received assent from the state governor, RN Ravi.

Back in September last year, Tamil Nadu cabinet approved an ordinance to ban online games with stakes. The law, which had been pending for several months, was published in the Government Gazette after obtaining the governor’s approval.

New Tamil Nadu Law Criminalizes Online Gambling

The State government of Tamil Nadu has enacted a new law, “The Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022”, which aims to crack down on online gambling and regulate online games. Violators of the law could face imprisonment and fines.

Punishments for Online Gambling and Advertising

The Act stipulates that anyone who provide online gambling services or online games of chance can be punished with imprisonment of up to three years, or fined up to 10 lakh rupees, or both. The law also prohibits the making of any advertisements that promote online gambling, with violators facing imprisonment of up to one year, or fines of up to ₹5,00,000, or both.

Penalties for Online Gamblers

According to the Act, individuals who engage in online gambling or play online games of chance with money or virtual stakes can be punished with imprisonment of up to three months, fines of up to ₹5,000, or both.

Establishment of Tamil Nadu Online Gaming Authority

The Act proposes the establishment of the Tamil Nadu Online Gaming Authority, which will be led by a retired officer of the rank of Chief Secretary to the Government. The authority will consist of members with expertise in law enforcement, information technology, psychology, and online gaming.

Its responsibilities will include issuing registration certificates to local online games providers, identifying online games of chance, overseeing the functioning of online games providers, collecting and maintaining information on their activities, and resolving grievances or complaints against them.

The Act grants the Tamil Nadu Online Gaming Authority the power to summon individuals, receive evidence on oath, require document production, and issue summons for witness or document examination.

Prohibition on Financial Transactions for Online Gambling

The Act prohibits banks, financial institutions, and payment gateway providers from facilitating any transactions for online gambling or online games of chance.

Regulations for Local and Non-Local Online Games Providers

Local online games providers in Tamil Nadu can only offer services in accordance with a registration certificate obtained from the Authority, and existing services can continue for 90 days, subject to the prohibitions of the Act. Non-local online games providers are prohibited from offering online gambling services in the state and must geo-block their services.

They are also required to inform prospective gamers of Tamil Nadu’s prohibition on online gambling and playing certain online games while physically present in the state, and include express contractual conditions to that effect.

Penalties for Non-Local Games Providers

Non-local games providers convicted under the Act face imprisonment of one to three years and a fine of ₹5,00,000-₹10,00,000. Subsequent convictions may result in varying terms of imprisonment and hefty fines.

To learn more about the Tamil Nadu Gazette Notification Online Gambling Ban ACT – visit here (Via)