TAMIL NADU

GOVERNMENT GAZETTE

EXTRAORDINARY

PUBLISHED BY AUTHORITY

[Regd. No. TN/CCN/467/2012-14.

GOVERNMENT OF TAMIL NADU

[R. Dis. No. 197/2009.

2022

[Price: Rs. 14.40 Paise.

No. 494]

CHENNAI, WEDNESDAY, OCTOBER 19, 2022

Aippasi 2, Subakiruthu, Thiruvalluvar Aandu-2053

DTP—Ex-IV-1 (494)

Part IV—Section 1

Tamil Nadu Bills

CONTENTS

Pages.

BILLS:

No. 53 of 2022—The Tamil Nadu Prohibition of Online Gambling and Regulation of Online

Games Act, 2022.

370-384

No. 54 of 2022—The Tamil Nadu Co-operative Societies (Fifth Amendment) Act, 2022.

385-386

No. 55 of 2022— The Tamil University (Second Amendment) Act, 2022. ..

387-388

No. 56 of 2022—The Tamil Nadu Prohibition (Amendment) Act, 2022.

389-392

No. 57 of 2022—The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and

Regulation of Trade and Commerce, Production, Supply and Distribution)

Tamil Nadu Amendment Act, 2022. ..

393-396

No. 58 of 2022—The Tamil Nadu Appropriation [No. 6] Act, 2022.

397-403

[369]

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BILLS INTRODUCED IN THE LEGISLATIVE ASSEMBLY

OF THE STATE OF TAMIL NADU

Under Rule 130 of the Tamil Nadu Legislative Assembly Rules, the following

Bill which was introduced in the Legislative Assembly of the State of Tamil Nadu on

19th October, 2022 is published together with Statement of Objects and Reasons

for general information:—

L.A Bill No. 53 of 2022

A Bill to prohibit Online gambling and to regulate Online games in the State

of Tamil Nadu.

WHEREAS during the recent years online gaming addiction has led many

persons to incur unsustainable debt resulting in suicides;

AND WHEREAS addiction to online games have caused financial distress and

ruined many families;

AND WHEREAS gaming disorder, predominantly online, has been recognized

and included by the World Health Organisation (WHO), in its International

Classification of Diseases (11th Revision), which is characterised by a pattern of

persistent or recurrent gaming behaviour and is, manifested by impaired control over

gaming, increasing priority given to gaming over other activities and continuation of

gaming despite the occurrence of negative consequences in personal, family, social,

educational, occupational or other important areas of functioning;

AND WHEREAS the Hon’ble High Court of Madras by Common Order dated

03.08.2021 in W.P.No.18022 of 2020, etc, struck down Part II of the Tamil Nadu

Gaming and Police Laws (Amendment) Act, 2021, which banned wagering or betting

in cyber space, as ultra vires the Constitution, with liberty to bring in an appropriate

legislation conforming to the constitutional sense of propriety in the field of betting

and gambling by the State;

Tamil Nadu Act 1

of 2021

AND WHEREAS the Government constituted a Five Member Committee under

the Chairmanship of retired Hon’ble Justice Thiru K. Chandru to advise on enacting

a fresh legislation on online games;

AND WHEREAS the Committee in its report, taking into account the parameters

of physical space of operation, time of playing, players’ relationship with other

players, addiction level, amount of money involved, level of economic activity, scale

of organisers’ profit and role of credit, has observed that online version of any game

cannot be compared with the offline version of the game, except in cases of word

games or board games not involving any random outcome generator;

AND WHEREAS the said report further states that in the case of online version

of games including online rummy, the algorithm for the random generators are

known to the developers and hence are pseudo random generators; such games

can be played with bots (an autonomous program or character designed to interact

with systems or users); no mechanism is available for auditing the centralised

server architecture of the gaming systems; and artificial intelligence can be used to

manipulate the games and lure the players into continued indulgence;

AND WHEREAS the said report classifies the online games, into two types,

namely, one which have minimal or negligible randomness factor and another having

random event or count generators which are pseudo random and are addictively

designed and accordingly recommends to regulate the former and to ban the latter;

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AND WHEREAS in a recent survey conducted by the Government among more

than two lakh teachers of the School Education department, to study the effects of

online games on school students, more than seventy four per cent. of the teachers

responded that concentration of students is impacted, sixty seven per cent. of the

respondents said that they noticed eye defects, more than seventy four per cent. of

them said they noticed decrease in intelligent quotient, writing skills and creativity of

students, more than seventy six per cent. said they have noticed significant decrease

in self esteem of students, more than seventy seven per cent. said they have noticed

increase of anger in students and more than seventy two per cent. said they have

noticed indiscipline among students;

AND WHEREAS the Government, on seeking the view of the general public

on the proposed legislation, more than ninety nine per cent. that is, 10,708 out of

the total 10,735 mails received, have requested for imposing a total ban on online

games;

AND WHEREAS seventeen stakeholders comprising of representatives from

the online gaming industry, think tanks, political parties, players association and

social activists, who were provided an opportunity to express their views in person,

have put forth various suggestions and requests to the Government, such as, to

allow self regulation by the industry themselves, regulation by the Government,

to differentiate real money games and other forms of games, to provide age and

money restrictions, to ban advertisements, to prevent money laundering, to provide

grievance redressal mechanism and to provide a total ban on online games;

AND WHEREAS it is considered that the issues of online gaming and gambling

cannot be dealt with by the old binary of game of chance versus game of skill and

a new conceptual framework is needed which incorporates understanding of how

information technology operates at basic level, the critical difference between

physical and online in general and also between physical and online versions of

games;

AND WHEREAS it is an established scientific fact that true random outcome

is not feasible in a software and any randomness will depend upon the specific

algorithm written by the developer and that audit of the algorithm makes it difficult

to detect any hidden algorithm designed to favour the game provider and that

overlay of artificial intelligence in the online gaming can make the gaming scenario

completely unfair to the game player/customer, with the game service provider /

facilitator literally being able to hold all the cards; and that no scientifically validated

algorithm for testing of even pseudo randomness is available at present;

AND WHEREAS due to the inherent addictiveness by design of the online

games and the money being put in by the game players, the complete gaming

scenario amounts to an exploitative, addictive service, causing not only health

hazards but also social and economic harm of epidemic proportions;

AND WHEREAS many research studies on the effects of online gambling

and online gaming addiction on youth, have highlighted negative effects such as

development of aggressive behaviour, poor eye sight, reduced concentration,

diminished analytical thinking, decreased productivity and hence should be viewed

as a potent vice that would affect the long term prospects of the State and its

population;

AND WHEREAS the ruining of families and suicide deaths due to online gaming

addiction affects public health, disturbs social order and prejudices the maintenance

of public order;

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AND WHEREAS the Government, after careful consideration of the report of

the said Committee, the findings of the survey among school teachers, research

studies on the subject, and the views of the stakeholders and the general public,

have decided to enact a law to prohibit online gambling and to regulate online games

in the State;

Be it enacted by the Legislative Assembly of the State of Tamil Nadu in the

Seventy-third year of the Republic of India as follows:-

CHAPTER-I.

PRELIMINARY.

Short title and

commencement.

(1) This Act may be called the Tamil Nadu Prohibition of Online Gambling

and Regulation of Online Games Act, 2022.

(2) It shall come into force on such date as the State Government may by

notification appoint.

Definitions.

In this Act, unless the context otherwise requires,-

(a) “Appellate Authority” means the Appellate Authority established by the

Government under section 13;

(b) “appointed day” means the date appointed under sub-section (2) of

section 1;

under section 3;

(d) “geo-blocking” means restricting users from accessing online content,

online applications or online services, based on the user’s geographical location;

(e) “Government” means the State Government;

(f) “local online games provider” means an online games provider,—

(i) whose central management and control of the service is in this

State; or

(ii) whose service that is available for access by the customers, is

hosted in this State;

(g) “Non-local online games provider’ means any online games service

provider who is not a local online games provider;

(h) “other stakes” means anything recognised as equivalent to money and

includes virtual credits, virtual coins, virtual tokens, virtual objects or any similar thing

that is purchased within, or as part of, or in relation to, an online game;

(i) “online gambling” means online wagering or betting and includes

playing of any online game of chance for money or other stakes, in any manner.

Explanation.— For the purpose of this clause, wagering or betting shall be

deemed to comprise the collection or soliciting of bets, the receipt or distribution of

winnings or prizes, in money or otherwise, in respect of any wager or bet, or any act

which is intended to aid or facilitate wagering or betting or such collection, soliciting,

receipt, or distribution;

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(j) “online gambling service” means a service, for online wagering or

betting or for any online game of chance and the customer of the service gives or

agrees to give money or put up any other stake for the purpose;

(k) “online game” means any game, whether or not there are other

participants in the game, that is played on an electronic or a digital device and

is managed and operated as a software through the internet or any other kind of

electronic or other technology for facilitating communication;

(l) “online game of chance” includes any online game which,—

(i) involves both an element of chance and an element of skill and the

element of chance dominates over the element of skill; or

(ii) involves an element of chance that can be eliminated only by

superlative skill; or

(iii) is a game that is presented as involving an element of chance; or

(iv) involves cards, dice, wheel or such other device, which works on

random outcome or event generator;

(m) “online games provider” means any person who provides a service for

the conduct of any online game;

(n) “online gaming server” means any mainframe computer or set of

computers, installed or maintained by the online games provider, that accepts,

processes, stores and validates transactions arising out of online gaming, and which

manages, monitors and controls the entire system of online gaming;

(o) “payment gateway” means, a service that authorises a user’s transfer

of funds between banks or financial institutions to merchants without direct delivery

of bank or credit card account information;

(p) “prescribed” means prescribed by rules made under this Act;

(q) “regulations” means regulations made by the Authority under section 5;

(r) “Schedule” means the Schedule appended to this Act;

(s) “State” means the State of Tamil Nadu;

Central Act 21 of

2000

(t) words and expressions used herein and not defined in this Act but

defined in the Information Technology Act, 2000 shall have the meaning, respectively,

as assigned to them in that Act.

CHAPTER-II.

THE TAMIL NADU ONLINE GAMING AUTHORITY.

(1) The Government may, by notification, establish with effect from such

date as may be specified in the notification, an Authority to be called the Tamil Nadu

Online Gaming Authority, to exercise the powers conferred on, and perform the

functions assigned to it under this Act.

Establishment

of Tamil Nadu

Online Gaming

Authority.

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(2) The Authority shall consist of the following Members nominated by

the Government, namely:-

(a) an officer, who has retired from a post not below the rank of Chief

Secretary to the Government - the Chairperson;

(b) an officer, who has retired from a post not below the rank of

Inspector General of Police – Member;

(d) an eminent psychologist - Member;

(e) an expert in the field of online gaming –Member.

(3) The Chairperson and Members of the Authority shall receive such

salary and allowances as may be determined by the Government.

(4) The Government may, in consultation with the Authority, provide such

officers and employees, as deemed necessary, to the Authority, for the efficient

discharge of its powers and functions under this Act.

Functions of

Authority.

(1) The Authority shall perform the following functions, namely:-

(a) regulate online games;

(b) issue certificate of registration to local online games providers;

Government, for inclusion in the Schedule;

(d) oversee the functioning of the online games providers in the

State;

(e) collect and maintain information and data with regard to the

activities of the online games providers;

(f)

request the Government to take appropriate action as per the

Information Technology Act, 2000, whenever deemed necessary,

for the purposes of this Act;

(g) resolve grievances or complaints received against any online

games provider;

(h) send periodical reports to the Government in such manner as

may be prescribed;

(i)

advise the Government on any matter regarding online gaming;

and

(j)

perform such other functions as may be prescribed.

(2) The Authority may constitute such number of committees from among

its members, as it deems fit, for the efficient discharge of its duties and performance

of its functions under this Act.

Power to make

regulations.

(1) The Authority may, by notification, with the previous approval of the

Government, make regulations consistent with the provisions of this Act or the rules

made thereunder, to carry out the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing

power, such regulations may provide for, —

(a) time limit, monetary limit, age restriction or such other restrictions

in regard to playing of online games; and

(b) procedure to regulate its own functions.

TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

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(1) The Authority, or any officer empowered by it, in order to perform

the functions conferred on it by or under this Act, may take such steps as may be

necessary to obtain any information from any online games provider or online game

player.

Power to obtain

information.

(2) The Authority may give directions, requiring any online games provider

or person in-charge of any online gaming website, establishment or premises, where

any activity relating to online gaming is carried out to furnish such information as

deemed necessary.

Central Act V of

1908.

(3) The Authority shall, while discharging any of its functions under this

Act, have the same powers as are vested in a Civil Court while trying a suit under

the Code of Civil Procedure, 1908, in respect of the following matters, namely:—

(a) summoning and enforcing the attendance of any person;

(b) receiving oral evidence on oath or written evidence on affidavits;

(d) requisitioning of any public record or copy thereof from any court

or office;

(e)

issuing summons for examination of witnesses or documents;

and

(f)

any other matter, which may be prescribed.

CHAPTER-III.

GENERAL PROHIBITIONS.

(1) Online gambling is prohibited.

(2) Playing of online games of chance specified in the Schedule, with

money or other stakes is prohibited.

Prohibition of

online gambling

and of online

games of

chance.

(3) No online games provider shall provide online gambling service or

allow playing of any online game of chance specified in the Schedule, with money or

other stakes or playing of any other online game in contravention of the regulations,

in any form.

8. No person shall make or cause to make any advertisement in any media

including electronic means of communication, in this State, which directly or indirectly

promotes or induces any person to indulge in online gambling or play any online

game of chance specified in the Schedule, with money or other stakes.

Prohibition of

advertisement.

9. No bank, financial institution or payment gateway provider shall engage in

any transaction or authorization of funds towards payment for any online gambling

or any online game of chance specified in the Schedule.

Prohibition of

transfer of funds.

CHAPTER IV.

REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.

10. (1) On and from the appointed day, no local online games provider shall

provide any service for the conduct of any online game except in accordance with

the certificate of registration duly obtained from the Authority.

Registration of

local online

games

providers.

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(2) Every local online games provider providing any service for the conduct

of any online game, immediately before the appointed day, may continue to provide

such service, subject to the general prohibitions contained in Chapter III of this Act,

for a period not exceeding ninety days from the appointed day:

Provided that such local online games provider applies for registration

under this section within a period of thirty days from the appointed day.

(3) Every application for registration shall be made to the Authority in such

form along with such fee as may be prescribed.

(4) On receipt of an application under sub-section (3), the Authority may,

after making such enquiry as it deems necessary, either issue or refuse to issue a

certificate of registration:

Provided that no application for issue of certificate of registration shall be

refused, unless a reasonable opportunity of being heard is given to the applicant.

(5) Every certificate of registration shall be issued in such form as may be

prescribed, subject to the following conditions, namely:-

(a) The online games provider shall not provide, any online gambling

service or allow playing of any online game of chance specified in the Schedule, with

money or other stakes;

(b) The online games provider shall neither allow nor cause to be

allowed to play any online game in contravention of the regulations.

(6) The certificate of registration issued under sub-section (5) shall be

valid for a period of three years.

Suspension and

revocation of

certificate of

registration.

11. (1) If the Authority is satisfied, either on a reference made to it in this

behalf or otherwise that—

(a) the certificate of registration issued under this Act, has been

obtained by misrepresentation or fraud;

(b) the holder of the certificate of registration has failed to comply with

the conditions, subject to which the certificate of registration has been issued; or

provisions of this Act, the rules or the regulations,

then, without prejudice to any other proceeding to which the holder of the certificate

of registration may be liable, the Authority may, by an order after giving him an

opportunity to show cause, revoke the certificate of registration by giving reasons

therefor.

(2) Notwithstanding anything contained in sub-section (1), where the

Authority is of the prima facie view that the certificate of registration granted to the

online games provider must be suspended, the Authority may, do so for reasons to

be recorded in writing, at any time before revoking the certificate.

Appeal.

12. (1) Any person aggrieved by an order of the Authority revoking or suspending

the certificate of registration under section 11, may prefer an appeal, within fifteen

days from the date on which the order is communicated to him, to the Appellate

Authority:

TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

377

Provided that the Appellate Authority, may entertain the appeal after expiry

of the said fifteen days period, if it is satisfied that there was sufficient cause for not

filing it within that period.

(2) The Appellate Authority, after giving a reasonable opportunity of being

heard to the appellant, shall decide the appeal as expeditiously as possible, but in

any case not later than one month from the date of receipt of the appeal.

13. (1) The Government may, by notification, establish an Appellate Authority,

which shall consist of a Chairperson and not more than two other members.

Establishment

of Appellate

Authority.

(2) A person shall not be qualified for appointment as the Chairperson of

the Appellate Authority unless he is a retired Judge of a High Court, or is a person

who is qualified to be a Judge of a High Court.

(3) The qualifications for appointment of the members of the Appellate

Authority shall be such as may be prescribed.

(4) The Chairperson and the members of the Appellate Authority shall

receive such salary and allowances as may be determined by the Government.

(5) The Government may, in consultation with the Appellate Authority,

provide such officers and employees, as deemed necessary, to the Appellate

Authority, for the efficient discharge of its powers and functions under this Act.

(6) Subject to the provisions of this Act, the Appellate Authority may

regulate its own procedure.

CHAPTER-V.

REGULATIONS FOR NON-LOCAL ONLINE GAMES PROVIDERS.

14. (1) No Non-local online games provider shall,— (a) provide any online

gambling service;

(b) allow playing of any online game of chance specified in the

Schedule, with money or other stakes; or

in this State.

Restrictions.

(2) No Non-local online games provider shall be deemed to have

contravened sub-section (1), if he has exercised due diligence or has provided

geo-blocking in this State for the purpose.

(3) For the purpose of sub-section (2), a Non-local online games provider

shall be deemed to have exercised due diligence if it had,--

(a) informed prospective customers that the State prohibits online

gambling and playing of certain online games to customers who are physically

present in this State;

(b) required the customers to enter into contracts with an express

condition that the customers shall not use the service, if they are physically present

in this State;

to establish that they were not physically present in this State;

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TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

(d) obtained data that indicated that the customers were not

physically present in this State when the relevant customer accounts were opened

and throughout the period when the service was provided to the customers; and

(e) taken all other reasonably practicable measures to ensure that no

person physically present in this State could have access to online gambling service

or to online games of chance prohibited under section 7.

Procedure to

deal with non-

compliance of

restrictions.

15. (1) Any Non-local games provider who fails to comply with any of the

restriction specified in section 14 shall be issued with a show cause notice by the

Authority in such form and manner, as may be prescribed, to furnish a reply within

such period as may be prescribed. If no reply is received or if the reply received

is not satisfactory, the Authority may proceed in accordance with sub-sections

(2) and (3).

(2) The Authority shall make a recommendation to the Government

to request the Central Government, or as the case may be, the officer specially

authorized by the Central Government in this behalf, to exercise the power under

section 69-A of the Information Technology Act, 2000 to block access to persons in

this State to the service provided by the Non-local online games provider:

Central Act

21 of 2000.

Provided that,—

(a) the Government may, for reasons to be recorded in writing,

refuse to act on the recommendation of the Authority; or

(b) where the Government accepts the recommendation of the

Authority, it shall ordinarily make a request to the Central Government within fifteen

days from the date of receipt of the recommendation.

(3) A copy of the recommendation made by the Authority under

sub-section (2), shall be provided to the Non-local online games provider concerned.

CHAPTER-VI.

OFFENCES AND PENALTIES.

Penalty for

contravention of

sections 7, 8, 10

and 14.

16. (1) Any person who indulges in online gambling or plays any online game

of chance specified in the Schedule, with money or other stakes in contravention of

section 7 or plays any other online game in contravention of the regulations shall be

punished with imprisonment for a term which may extend to three months or with fine

which may extend to five thousand rupees or with both.

(2) Any person who makes or causes to make advertisement in any media,

in contravention of section 8, shall be punished with imprisonment for a term which

may extend to one year or with fine which may extend to five lakh rupees or with

both.

(3) Any person who provides, online gambling service or any online game

of chance specified in the Schedule with money or other stakes or any person who

contravenes the provisions of sub-section (1), (2) or (5) of section 10 or section 14

shall be punished with imprisonment for a term which may extend to three years or

with fine which may extend to ten lakh rupees or with both:

Provided that a Non-local online games provider shall be punished for

contravention of section14, only if the Central Government or an officer specially

authorised by it in this behalf, exercises the power under section 69-A of the

Information Technology Act, 2000.

Central Act

21 of 2000

TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

379

(4) (a) If any person convicted of an offence under sub-section (2) is

again convicted of an offence under the same provision, he shall be punished with

imprisonment for the second and for every subsequent offence for a term which shall

not be less than one year, but may extend to three years and shall also be liable to

fine which shall not be less than five lakh rupees, but may extend to ten lakh rupees.

(b) If any person convicted of an offence under sub-section (3) is

again convicted of an offence under the same provision, he shall be punished with

imprisonment for the second and for every subsequent offence for a term which shall

not be less than three years, but may extend to five years and shall also be liable

to fine which shall not be less than ten lakh rupees, but may extend to twenty lakh

rupees.

17. No Court shall take cognizance of any offence punishable under this Act,

rules or regulations made thereunder except upon complaint in writing made by a

person authorized in this behalf by the Authority.

Cognizance of

offences.

18. (1) Any officer specially empowered by the Government, by notification

in this behalf, may accept, from any person who has committed an offence under

sub-section (1) of section 16, by way of composition of such offence, a sum of money

not exceeding the maximum amount of fine specified for such offence but not less

than fifty per cent. of the said amount.

(2) On payment of such sum of money to such officer, the accused person,

if in custody, shall be discharged and no further proceedings shall be taken against

him in respect of such offence.

(3) The compounding of an offence under sub-section (1) shall be allowed

only once for any person.

Power to

compound

offences.

19. (1) Where an offence under this Act has been committed by a company,

every person who, at the time the offence was committed, was in-charge of, and was

responsible to, the company for the conduct of the business of the company as well

as the company, shall be deemed to be guilty of the offence and shall be liable to be

proceeded against and punished accordingly:

Offences by

companies.

Provided that nothing contained in this sub-section shall render any such

person liable to any punishment, if he proves that the offence was committed without

his knowledge or that he had exercised all due diligence to prevent the commission

of such offence.

Central Act 18 of

2013

(2) Notwithstanding anything contained in sub-section (1), where an

offence under this Act has been committed by a company and it is proved that the

offence has been committed with the consent or connivance of, or is attributable

to, any neglect on the part of any director, manager, secretary or other officer of

the company including key managerial personnel as defined in the Companies Act,

2013, such director, manager, secretary or other officer including key managerial

personnel, shall be deemed to be guilty of that offence and shall be liable to be

proceeded against and punished accordingly.

Explanation.— For the purposes of this section, —

(a) “company” means any body corporate and includes a firm or other

association of individuals; and

(b) “director” in relation to a firm, means a partner in the firm.

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CHAPTER-VII.

MISCELLANEOUS.

Chairperson,

members,

officers and

employees

of Authority

and Appellate

Authority to be

public servants.

20. The Chairperson, every member of the Authority and of the Appellate

Authority, officer or any other employee of the Authority and of the Appellate Authority

shall, when acting or purporting to act in pursuance of any of the provision of this

Act be deemed to be a public servant within the meaning of section 21 of the Indian

Penal Code.

Central Act

XLV of 1860.

Protection of

action taken in

good faith.

21. No suit, prosecution or other legal proceeding shall lie against any public

servant in respect of anything which is done in good faith or intended to be done in

the discharge of his official functions or in exercise of his powers under this Act, the

rules, or the regulations.

Act not in

derogation of

any other law.

22. The provisions of this Act shall be in addition to, and not in derogation, of the

provisions of any other law, for the time being in force.

Presumption as

to online game

of chance and

power to amend

Schedule.

23. (1) For the purposes of this Act, any online game specified in the Schedule

shall be presumed to be an online game of chance.

(2) The Government may, by notification, omit or add any online game

in the Schedule, on the recommendation of the Authority and upon issue of such

notification, the Schedule shall be deemed to be amended accordingly.

Power to make

rules.

24. (1) The Government may make rules for carrying out all or any of the

purposes of this Act.

(2) (a) All rules made under this Act shall be published in the

Tamil Nadu Government Gazette and, unless they are expressed to come into force

on a particular day, shall come into force on the day on which they are so published.

(b) All notifications issued under this Act shall, unless they are

expressed to come into force on a particular day, shall come into force on the day on

which they are so published.

(3) Every rule made or notification or order issued under this Act shall, as

soon as possible, after it is made or issued, be placed on the table of the Legislative

Assembly, and if, before the expiry of the session in which it is so placed or the

next session, the Legislative Assembly makes any modification in any such rule or

notification or order, or the Legislative Assembly decides that the rule or notification or

order should not be made or issued, the rule or notification or order shall, thereafter,

have effect only in such modified form or be of no effect, as the case may be, so,

however, that any such modification or annulment shall be without prejudice to the

validity of anything previously done under that rule or notification or order.

Power to remove

difficulties.

25. If any difficulty arises in giving effect to any provision of this Act, the

Government may, by an order published in the Tamil Nadu Government Gazette,

make such provisions not inconsistent with the provisions of this Act as may be

necessary or expedient for removing the difficulty.

Provided that no such order shall be made after the expiry of two years

from the date of the commencement of this Act.

Repeal.

26. The Tamil Nadu Prohibition of Online Gambling and Regulation of Online

Games Ordinance, 2022 is hereby repealed.

Tamil Nadu

Ordinance

4 of 2022.

THE SCHEDULE.

[SEE SECTION 23]

ONLINE GAMES OF CHANCE

(1) Rummy

(2) Poker

TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

381

STATEMENT OF OBJECTS AND REASONS

The State has the responsibility to protect the mental health of citizens and to guard against the ill-effects of gambling in any

form, including betting. In this light, the State has maintained a long-standing policy of prohibiting in-person gambling and betting

as reflected in the Tamil Nadu Gaming Act, 1930 (Tamil Nadu Act III of 1930) and the Chennai City Police Act, 1888 (Tamil Nadu

Act III of 1888). The spread of online gaming, especially addictive online games and gambling games played via the Internet,

threatens to undo the efforts of the State. Firstly, gambling by means of electronic communication is available at all hours, from

any place, and to any person who is able to access a device capable of remote communication. Secondly, online gambling

often involves players competing with non-human /virtual participants, which are controlled by a variety of computer algorithms.

The degree of chance or skill involved in such remote games cannot be assessed independent of the relevant algorithm or

program. Lastly, remote gambling often takes place by means of virtual currencies and tokens, bypassing the State’s financial

surveillance. Thus the online gambling considerably affects mental health of the people and has left many families in financial

distress, and would affect the long term prospects of the State and its population.

2. Similarly, studies show that other online games not involving gambling and betting also have negative consequences in

personal, family, social, educational, occupational or other important areas of functioning of common people. Further, the school

students are also affected by these games resulting in decreasing Intelligent Quotient, writing skills and creativity.

3. Thus, online gambling and online games are addictive in nature and increase the threat to public order manifold, while

posing difficulties in terms of designing appropriate regulation. A Committee headed by retired High Court Judge Thiru. K. Chandru,

which was constituted to advise the Government on enacting a fresh legislation on online games, has in its report, taking into

account various parameters has observed that online version of any game cannot be compared with the offline version of the

game, except in cases of word games or board games not involving any random outcome generator and that online games

of chance involving random generators are known to the developers and hence are pseudo random generators; such games

can be played with bots; no mechanism is available for auditing such gaming systems; and artificial intelligence can be used to

manipulate the games and lure the players into continued indulgence.

4. On careful consideration of the report of the said Committee, the findings of a survey among school teachers on the effects

of online games on Government school students, research studies on the subject and the views of the stakeholders and general

public and after having examined various legislative options at its disposal, the Government decided to prohibit online gambling

and to regulate online games. Accordingly, the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games

Ordinance, 2022 (Tamil Nadu Ordinance 4 of 2022) was promulgated by the Honorable Governor on the 1st October 2022 and

the same was published in the Tamil Nadu Government Gazette Extraordinary, dated the 3rd October 2022.

5. The Bill seeks to replace the aforesaid Ordinance.

M.K. STALIN,

Chief Minister.

382

TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

STATEMENT

UNDER

RULE

168

THE

TAMIL

NADU

LEGISLATIVE ASSEMBLY

RULES

EXPLAINING

THE CIRCUMSTANCES WHICH NECESSITATED THE PROMULGATION OF THE TAMIL NADU PROHIBITION

OF ONLINE GAMBLING AND REGULATION OF ONLINE GAMES ORDINANCE, 2022 (TAMIL NADU

ORDINANCE 4 OF 2022)

The State has the responsibility to protect the mental health of citizens and to guard against the ill-effects of gambling in

any form, including betting. In this light, the State has maintained a long-standing policy of prohibiting in-person gambling and

betting as reflected in the Tamil Nadu Gaming Act, 1930 (Tamil Nadu Act III of 1930) and the Chennai City Police Act, 1888

(Tamil Nadu Act III of 1888). The spread of online gaming, especially addictive online games and gambling games played via the

Internet, threatens to undo the efforts of the State. Firstly, gambling by means of electronic communication is available at all hours,

from any place, and to any person who is able to access a device capable of remote communication. Secondly, online gambling