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Betting: Why has the state banned online gambling?

Betting: Why has the state banned online gambling?

Tamil Nadu recently became the newest state to ban online gaming activities which involve betting with real money. The decision came in the wake of several suicides across the state as people lost money due to betting and online gambling.

With this decision, the Southern state has now joined its neighbours like Telangana and Andhra Pradesh, who too have banned online gambling for similar reasons.

What does this Online Gambling Ban Cover?
This ban on online betting includes games of skill like poker and rummy - something that has previously been deemed as possibly legal in India. In fact, leading poker and rummy houses online are operating under the premise of games of skill being legal. This also covers a  ban on sports betting - whether it is football, cricket, or tennis. Yes, that’s right - sports betting is banned in Tamil Nadu too.

The decision was announced by the Tamil Nadu Governor Banwarilal Purohit, who followed the proposal laid down by the state government.

Wagering & Betting Banned in Tamil Nadu Cyber Space
The ordinance passed down by the governor includes provisions that talk about “banning the persons who are wagering or betting in cyberspace using computers or any communication device or resource, along with an electronic transfer of funds.” In short, betting and gambling is completely banned in the state - whether it is the famous tournaments like the Indian Super League and the Indian Premier League or casino games.

Breaking the law will attract a fine of Rs.5,000 and six months imprisonment. Those operating gaming houses can end up in jail for up to two years and will also incur a fine of Rs.10,000 fine.

Earlier this month, three people resorted to suicide in the city of Coimbatore after incurring heavy losses in online rummy. There are also reports of many youngsters being cheated of their hard-earned money or succumbing to peer pressure.

But is a Blanket Ban on Online Betting Sites the Answer?
There are numerous precedents for why legalising online betting within a structured framework can pave the way to resolve these problems. Leading countries in Europe, the United Kingdom, and other international nations have legalised online gaming and gambling - sports and casinos - and there is no reason why we cannot learn from making gambling online legal in India.

One of the biggest advantages of legalising online sports betting and online casinos would be the increased tax revenue. Secondly, it can also lead to a reduction in illegal activities and operation of bookies/gambling houses.

Responsible Gaming Needs to be a Priority
That said, the first thing that needs to be addressed is the core principle of responsible gambling. Operators who are willing to provide online betting services must build a framework that frequently imprints the ethos of responsible betting in the minds of the users. This includes things like deposit limits, time out, and self-exclusion.

There also needs to be a 24/7 support centre where customers can connect with trained, experienced professionals and discuss their gambling problems. Something similar can also be set up at a state/national level. The idea here should be to break the taboo associated with online betting and make it a more acceptable norm in India.

Now, saying all this - every single online casino and sports betting operator already has these responsible gambling practices in place. In fact, it’s a requirement for them to get licensed and become a legit betting website! In fact, the Malta Gaming Authority, one of the biggest providers of gambling licenses, has even set up a Responsible Gaming Foundation.

There Must be a Focus on the Indian Players’ Needs
Secondly, we also need to look at the payment methods and deposit options supported by strict KYC norms and regulations. By giving the customers a direct, structured, and safe way to deposit money at a sportsbook and online gaming operators, we can reduce the chances of illicit activities taking place.

Lastly, there also needs to be a core emphasis on educating the audience about the ins and outs of gambling. The information provided needs to be absolutely transparent and digestible by the Indian audience.

Press release by: Indian Clicks, LLC

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