Tamil Nadu plans to ban online games like rummy that involve money

Industry calls for stringent regulatory framework instead of complete ban

Tamil Nadu government is planning to ban online games like rummy and others, which involve money. Meanwhile the industry has asked the state to set up a committee to review, discuss and propose a regulatory framework for games of skill similar to Nagaland and Sikkim.

Additional Advocate General (AAG) M Sricharan Rangarajan recently informed the Madurai Bench of the Madras High Court that the state government was actively considering regulating the online skill gaming sector. The development comes after the recent suicide reports related to online gaming.

Sameer Barde, CEO, The Online Rummy Federation (TORF) has said they want to ensure that any new regulation is not prohibitive and builds in protection for consumers and operations of legitimate operators.

He added, in the last two years, TORF members have taken extraordinary and voluntary steps to self-regulate and give players the tools to play responsibly.

TORF said that the government should regulate this sector to ensure only legitimate, legal operators who follow strict protocols are allowed to operate and a clear distinction drawn from those who try and operate above the law.

"Tens of thousands of players from Tamil Nadu enjoy playing online rummy safely and responsibly. Effective regulation will let the vast majority of the players who play responsibly continue to enjoy the game, protect the players that are vulnerable, and lead to substantial additional revenues for the government," said Barde.

Jurisdictions around the world that have chosen prohibitive measures over regulation have had to deal with a large underground economy. A case in point is the recent Rs 1,000 crore gambling scam in Telangana which surfaced after it chose to ban skill gaming in 2017.

"In the absence of regulation, and in case of any prohibitive action that doesn’t draw a clear line between legitimate skill gaming and illegitimate operators, the government would unintentionally exacerbate the problem it is trying to solve by encouraging uncontrolled illegal online gaming," he added.

TORF asked the Tamil Nadu government to set up a committee to review, discuss and propose a regulatory framework for games of skill similar to Nagaland and Sikkim. A discussion for a proposal to regulate this industry can address many concerns including setting time and monetary limits for players on a daily/weekly/monthly basis, stronger KYC checks & social profiling of users to ensure that players are financially stable adults, strict advertising standards to promote gaming as entertainment and not a way to earn money, an annual license fee and a player support contribution to help vulnerable players among others.