The State Government seems to back a Committee that recommends outlawing all online and mobile games played for real money. Previous attempts had been stricken down by Courts while global best practices suggest a blanket ban can never be a lasting solution.
A Foregone Conclusion Open to Public Consultation
The state of Tamil Nadu has summoned an ad hoc committee to report on possible reasons for banning all online games played for real money, national media reports. Recommendations are expected in the coming weeks, while public consultation on the matter had been open until mid-August, according to an official statement by TN authorities.
Comprising former judges, police officers and anti-gambling NGOs, the panel has already submitted its conclusions. Judging by local reports, the matter seems settled for the executive branch and all procedural matters will soon be passed on to the state legislators.
Efforts to mitigate unregulated gambling are not new at a state or national level, of course. The TN committee had to analyze online gaming risks (personal and financial) and advertisement standards, with the focus being on online rummy particularly. In the end, authorities seem set upon trying to prohibit local residents from playing all online games for money.
Placing a blanket ban on online games, however, seems like a wild goose chase, market experts agree. While browsing cricket betting tips would remain completely legal, favourite games like poker, fantasy sports and online casinos will be off limits for Tamil Nadu players.
Inevitably, however, users will still be able to find ways to play their preferred real-money games, albeit without any safety measures in place or any of that revenue staying in the local economy. Instead of searching for Indian sites offering live cricket satta rates, people will simply reach out to foreign platforms. Or play on the black market through back-alley bookies.
We are reminded that in late 2020 the Tamil Nadu government already issued a blanket ban on online gaming. In August 2021 the Madras High Court overturned that ordinance after a series of pleas by gaming stakeholders, ruling it unconstitutional. Authorities moved the Supreme Court against that decision but, a year later, no hearing has been set.
Regulation the Way Forward
Instead of taking a moralistic yet sterile stance, policymakers would do well to trust real-world statistics and best practices from mature gaming markets. Regulating the domestic gaming industry has worked phenomenally well for practically all developed economies, including in curbing any negative impacts of gambling.
Case studies show that legitimate gaming operators prefer adhering to high regulatory standards instead of competing with unlimited black-market sites. Locally issued gaming licenses lead to elevated consumer protection and tax collection to begin with. They also make it easier for authorities to monitor and enforce desired standards and market correctives.
Problem gaming is mitigated through a series of measures like self-exclusion and blacklists, age and spending limits, advertisement guidelines and extensive awareness programs. And if these benefits are not enough for State lawmakers, there is also the issue of local job creation and the amount of revenues kept by Indian gaming studios that would have to relocate or shut down otherwise.
Governments have basically two choices – regulate online gaming for the benefit of public welfare and the protection of local consumers or chase an unimaginable quantity of offshore sites and black market operators that obey no laws or local regulations.
Since the latter option has proven ineffective practically everywhere around the world, the Committee on Reforms in Cricket had already recommended market regulation in 2015. The Law Commission of India itself had done the same in 2018, after examining market data and court judgements.
Apparently, Tamil Nadu politicians have minds of their own and they still move in the opposite direction.
