Tamil Nadu Cabinet approves new ordinance to ban online gaming with stakes

The Tamil Nadu Cabinet has approved an ordinance to ban online gaming with stakes in the state¹. The move follows a directive from Governor Banwarilal Purohit, who cited the proliferation of real money online games as a reason for rising suicide cases¹.

The state first banned every type of online game involving real money in November 2020¹. A year later, the Madras High Court set aside that ordinance, calling it one-sided and regressive¹. The court treated rummy as a game of skill and struck down the Tamil Nadu Gaming Act, which had banned online games including online rummy and online poker¹. A five-judge bench of the Supreme Court has held that contests involving significant skill are not gambling, and the apex court is currently hearing whether the decision to strike down the ban is legal¹.

The article questions the link between online gaming and suicides in the state. It cites a study by a psychiatrist finding insufficient evidence to conclude whether suicide rates have risen because of internet gaming¹. The Rotary Rainbow Project, which counsels suicide victims' families in Tamil Nadu, found several instances of misreporting the cause of suicides, and families in two cases linked to gaming addiction said a debt trap was the real reason¹. A separate study by Sradha, which counsels people with suicidal tendencies, cited drug abuse, alcoholism, marriage-related issues, failure in love, bankruptcy or debts, unemployment, exam failure, career problems and poverty as factors behind suicides in the state¹.

The Online Rummy Federation said state governments should implement specialized laws to control online games rather than resort to blanket bans, since such actions would simply fuel illicit gaming operations¹.

The article gives figures for the sector: the online gaming industry was worth ₹13,600 crore in 2021 and is expected to bring in ₹29,000 crore by 2024-25, with active gamers projected to rise from 433 million in 2018 to 657 million in 2025, a 50% increase, and the industry growing at 30% per year¹.

What it means for players

The ordinance targets online games played for stakes, so real money play in Tamil Nadu faces prohibition again if it takes effect. The earlier ban covered all online games involving real money, and the court's reversal turned on whether games such as rummy and poker are skill contests rather than gambling¹. Players in the state, including visitors, face uncertainty while the Supreme Court hears whether striking down the previous ban was legal¹. The article notes that blanket bans may push play toward illicit operators, according to the Online Rummy Federation¹. No enforcement date, penalties or licensing details for the new ordinance have been reported¹.

What happens next

The Supreme Court is hearing whether the decision to strike down the earlier ban is legal¹. No date for that hearing, or for the ordinance to take effect, has been reported¹.