Online rummy and poker platforms such as Adda52, RummyCircle, Junglee Rummy, and PokerBaazi have started blocking access to people in Tamil Nadu after the state governor approved an ordinance on October 10 to ban online gambling.
Puneet Singh, co-founder and COO of Baazi Games, which runs the online poker platform PokerBaazi, told Moneycontrol that they have geoblocked Tamil Nadu "as a precautionary measure" and are "awaiting for the effective date to be notified which is still not clear". PokerBaazi has said on its website that it will no longer accept membership requests from people in Tamil Nadu.
The service is not available in the state, according to online poker site Adda52, because the applicable laws "prohibit a player from using the services offered on our website."
"Consequently, players from restricted states will not be able to play the game until the state government permits it," the company said in an email.
RummyCircle, which is run by skill-based gaming unicorn Games24x7, says on its website that players from Tamil Nadu are not permitted to play online rummy for prizes, whereas Junglee Rummy states on its website that users residing in or logging in from Tamil Nadu will not be able to access real money games or tournaments.
Bengaluru-based skill gaming platform Mobile Premier League (MPL) has also stated on its website that playing online poker or rummy for real money is banned in Tamil Nadu. MPL allows users to compete in free and paid competitions across more than 60 games, including fantasy sports, sports games, puzzle, casual, and board games.
The Tamil Nadu government passed an ordinance earlier this month to prohibit online gambling, classifying online rummy and poker as "online games of chance." While the ordinance makes no mention of any other game formats other than rummy and poker, it does mention plans to "regulate online games in the state."
According to the ordinance, Tamil Nadu will establish the Tamil Nadu Online Gaming Authority, which will have the authority to regulate online games, issue registrations and oversee the functions of local online gaming providers, identify games of chance for suspension, and resolve any grievances or complaints received against any gaming provider.
The move comes as the Supreme Court has started hearing the Tamil Nadu government's petition challenging a Madras High Court decision that overturned the previous AIADMK-led government's November 2020 ban on online games involving the transfer of money. The state high court declared it unconstitutional in an order issued on August 3, 2021.
Jay Sayta, a technology and gaming Lawyer said it is currently not clear if the notification declaring the appointed date for bringing the ordinance into force has been issued and the Tamil Nadu Online Gaming Authority has been established.
"Until the Ordinance is brought into force by a separate notification and the Gaming Authority is established, the law cannot be implemented. Since the new law is contrary to judgments and well-established jurisprudence on games of skill, it is sure to be challenged in courts" he said.
Gaming industry raises serious concerns
According to industry executives, South India is a particularly important market for skill-based games like Rummy, which is popular in these states. The move also coincides with the country's festive season, a critical period for these companies in terms of customer acquisition and platform usage.
Real money gaming (RMG) contributed around 70% of the country's gaming sector revenue, which reached Rs 10,100 crore in 2021, a 28% year-over-year rise, according to a recent EY-FICCI report. In 2021, Rummy had a 28% growth in income, it said.
Skill gaming industry associations and skill-based gaming firms have expressed dissatisfaction with the recent Tamil Nadu Ordinance, claiming that it disregards recent Supreme Court rulings as well as the Madras High Court decision.
"Rummy being a game of skill has been settled by the Supreme Court and has been held to be a protected trade under Article 19(1)(g) of the Constitution...In its detailed judgment, the Honorable High Court of Madras reaffirmed the preponderance test for distinguishing between games of skill and games of chance especially in the context of rummy, reinforcing that both rummy and poker are games of skill" said Sameer Barde, CEO of industry body E-Gaming Federation.
Skill gaming industry body The All India Gaming Federation has also urged the Tamil Nadu government to reconsider the ordinance, saying it will impact the overall business in the sector.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
