Why Casino Is Banned In India
Why Casino Is Banned In India – The real money gaming industry in India has been in the news for the past few months. The sector has recently been in the limelight after the Tamil Nadu Cabinet passed an ordinance on September 26 banning all forms of online skill games within the state.
On October 8, the state governor RN Ravi signed and approved the order. On October 19, Tamil Nadu Assembly Chief Minister M. Stalin banned all forms of online gambling. This bill, like the one passed in February 2021, would classify all forms of online gaming as “gambling”.
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The new law, titled Tamil Nadu Gambling Prohibition and Regulation of Online Games, 2022, was drafted based on the recommendations of a committee headed by retired Madras High Court judge K. Chandra. In its 71-page report, the committee noted that online games lack skills and are a major source of addiction and debt among young people. The Committee believes that online gaming cannot be regulated and should therefore be banned completely.
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The state government is yet to announce when the law will come into effect. A press release published by the government noted that online games and gambling are highly addictive, lead to suicide, affect mental health and destroy families.
Due to the passage of this bill, online casinos, gambling and betting have been banned in Tamil Nadu. For the majority of the population, this is a positive step in curbing gambling, especially for young people who are easily attracted to online games.
Soon after the Tamil Nadu Gaming and Police Act 2021 was passed by the Tamil Nadu state Assembly in February last year, skill-based gaming firms Junglee Games, Play Games24x7, Head Digital Works and industry body All India Gaming Federation (AIGF) protested against the blanket ban. to prohibit. In the Madras High Court.
The case was heard by Chief Justice Sanjib Banerjee and Justice Senthilkumar Ramamurthy. During one of the sessions, Banerjee criticized the state government’s wholesale ban on online gaming. He stressed that denying individuals the ability to earn money through their gaming skills is a gross violation of their rights.
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Advocate General R. State Government. Shunmugasundaram said, while defending the government’s action, he highlighted cases where several people have taken their own lives after suffering losses through online gaming. The Supreme Court replied: “Just because a madman indulges in such a thing does not mean that all games of skill can be banned altogether.”
Chief Justice Banerjee cited Egyptian actor Omar Sharifto as an example to explain the fallacy of blanket ban. The “Doctor Zhivago” star was a famous contract player. In 1964, he was part of the bridge team of the United Arab Republic at the World Bridge Olympiad, and in 1968 he led the Egyptian team at the Olympics. Thanks to his special talent as a bridge player, Sharif improved his skills and earned a lot of money through it. The Chief Justice opined that if the state bans games, talented people like Sharif will be prevented from showcasing his talent. This, in turn, will be a violation of their rights.
On 3 August 2021, the Madras High Court struck down the Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021 as “excessive and disproportionate”. The state government challenged the decision of the Madras High Court in the Supreme Court and the case has now gone to trial.
While the case is pending before the Supreme Court, the Tamil Nadu government has passed another law banning online games, including games of skill like rummy and poker, under mounting political pressure from the opposition. This, in turn, has led to many major online gaming sites blocking users from Tamil Nadu.
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There are currently over 400 Indian gaming companies and the country has 420 million online gamers, second only to China, according to a KPMG analysis. Should gambling be regulated or banned? What the ban on gambling in Karnataka means for the rest of India
Nationally, gambling is regulated by the Public Gambling Act of 1867, an old law from a different era.
Along with the Internet, gambling has evolved over the years. From shady rooms to reputable online sites, playing casino games is much safer than ever before.
International sites used to be too generic, ignoring the preferences of local players. Now people will find more sites that embrace Indian gamers and put Bharat into context when collecting gaming offers.
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Many online casinos now offer Teen Patti and Andar Bahar, as well as the most international poker roulette, blackjack and online real money.
But on a larger scale, what does this mean for the average Indian player in Karnataka? Laws seem to be everywhere. Nationally, gambling is regulated by the Public Gambling Act of 1867, an old law from a different era.
Some Indian states are very open to gambling, allowing you to play wherever you want. Other states go the other way, making it impossible to place bets on almost anything.
In September 2021, the Karnataka state legislature amended the Karnataka Police Act to implement a complete ban on gambling within the state.
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Most states in India do not have strict laws prohibiting online betting or casinos. This is not to say that states have taken a strong stance against these laws, just that they have not enacted any clear laws against modern gambling.
During the height of Covid-19, there was concern about harmful gambling habits, so several states of the country tried to introduce stricter gambling laws.
Almost all countries faced significant obstacles. Recently, Tamil Nadu saw a high court backlash when it tried to outlaw all games of skill (and gambling) in the state.
But what is a game of skill? In the past, horse racing, poker, fantasy sports and rummy were considered games of skill.
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So how is the choice made? Currently, it is up to each state. Ideally, however, India should strive for a national law that allows for a standardized set of laws related to gambling.
There are several aspects that need to be considered when making recommendations on what Indian gambling regulation should look like.
In order to level the playing field, legislation should reflect the current situation. As many states in India have decided to update the outdated act, it is time to reflect the same in the national law.
Each state must choose between a complete ban on (online) gambling and regulation of real money online betting.
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While players have the chance to win lotteries, casino games and bets on sporting events, their actual winnings can be some of the biggest rewards.
Gambling regulation makes it much easier to impose taxes on winnings. The money collected from these taxes can be used for good public works.
The introduction of any new industry in any district leads to the creation of jobs and has a positive effect on the employment rate.
Even when it comes to problem gambling, the regulation can provide online casinos with clear guidelines on how to better manage the problem. For example, rules can be introduced to self-exclude or set time and deposit limits for gamblers. A spokesperson for a major online gaming platform said the pace of the notification of the law was a “shock” to the industry and would cause a “huge disruption” to businesses in Karnataka.
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With the Indian Premier League (IPL) still going on, gaming companies were cautious after the Karnataka government’s ban on online gambling was announced on Tuesday. A number of online gaming companies depend on the IPL as it generates a significant portion of their revenue. Companies are now seeking legal avenues to challenge the ban.
According to the Internet and Mobile Association of India (IMAI), there are 92 gaming companies registered in Bengaluru, employing over 4,000 people and attracting investments of Rs 3,000 crore in the last three years alone. (Representative photo)
A spokesman for the major online gaming platform said the pace of the law’s announcement would be a “shock” to the industry and cause “huge disruption” to businesses in the state.
“Karnataka’s current law to ban online gaming is a major blow to India’s fastest-growing entertainment sector. Investments, jobs, revenue and therefore taxes will be severely affected. The industry has sought clarity on several precedents that have determined the legality of ‘creative gaming’ and the state should take these considerations into account while formulating a favorable gaming policy that will facilitate the growth and opportunities of the sector,” said Biren Ghose, Chairman. This was announced by CII National Committee on AVGC and President of Association of Bangalore Animation Industry (ABAI) on Wednesday.
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He added that the industry body was a partner of the state government in protecting the interests of players, operators and game developers.
“We request the state government to come up with a set of rules in consultation with the industry to ensure that this is legal.