#EGF

TN man dies by suicide after suffering losses due to online gambling. Manimuthu, a manager at an electronics store, left a suicide note blaming online gaming. Governor RN Ravi is yet to give his assent to the bill banning online games. The Bill was passed in the Assembly on October 19. There have been several cases of people in Tamil Nadu dying by Suicide because they lost money on online betting platforms. In July, Bhavani, 29, died by hanging after losing Rs 3 lakh to Casto Club app. On November 26, Maji, from Odisha, lost Rs 70,000 to an online rummy app and committed suicide.

Governor RN Ravi met with E-Gaming Federation representatives on December 5, 2022. The meeting took place at Raj Bhavan in Chennai. Governor Ravita is yet to give his assent to the Bill banning online gambling and regulating online games. EGF declared it would challenge the ordinance banning the online gaming. Law Minister S Regupathy met Governor on 1 December to discuss the issues raised by the Governor. The Bill is still under consideration of the governor. He will give assenting after his doubts are cleared. It is a private meeting.

Shankar, 29, from Coimbatore died by suicide on Wednesday. He left a note behind blaming his losses from online gambling for his death. Last week, Salman from Konathukadavu died after losing Rs 10 lakh in online gaming. Vinoth Kumar, a 21-year-old engineering student, died in his hostel room. Earlier this month, Manimuthu, manager at an electronics store in Vazhpadi, Salem, committed suicide. In November, labourer from Odisha died of a gambling-related accident in Sankaraankovil. Pattali Makkal Katchi president Anbumani Ramadoss called for the Governor to approve the ban on online casinos.

The E-gaming Federation is taking the Tamil Nadu Government to court on a law banning online gambling and proposing regulation for online gaming. The law recognises rummy and poker as games of chance. EGF comprises several top gaming firms including the Tiger Global-backed Games 24*7, which runs the RummyCircle game, and Junglee, who won a case against a 2021 ban at the Madras High Court in August last year.

Jo Abergel is co-founder of the Ethical Gambling Forum in 2022. Jo is also a judge at the Casino Guru Awards. She talks about the ethics of gambling industry and what needs to be done without hesitance and delay.

Last year, Maqbool lost close to 400,000 rupees ($5,00, £4,010) in five months playing an online card game. He used to lose 70% of his monthly salary to these games.

Tamil Nadu introduced a law banning online gambling this week. The bill will be challenged by the E-gaming Federation.

There has been a 15-20% increase in the number of people seeking treatment for gambling addiction after the lockdown. Ashwini, 17, is under psychiatric treatment. He started playing some games as a way to redeem reward points. What started as fun and games quickly became a habit. He borrowed money from friends and stole valuables from home. His father confronted him and he confessed to his addiction. Dr Manoj Sharma, professor at NIMHANS Bengaluru’s SHUT clinic that tackles tech de-addiction, says people were driven by boredom and lack of work to go online during the pandemic.

Bill against online gambling passed by TN Assembly. E-Gaming Federation threatens to challenge the ordinance in court. Chief Minister MK Stalin says the Bill will involve expenditure from the State's consolidated fund. Assembly Speaker M Appavu adjourned the house sine die. The Winter Session started on Monday. The first supplementary estimates for 2022-2023 were presented on Tuesday. On Wednesday, the debate on the same was held. It was on Wednesday that the Assembly passed the Prohibition of Online Gaming and Regulation of online Games Act, 2022. Governor promulgated an ordinance to ban gambling and regulate online games on October 1.

The arrival of the pandemic has exacerbated the negative impact of online gambling. Despite the country-wide ban on gambling, the thrilling activity continues illegally and underground in most states.

Currently, 18% GST is levied on the commission collected by the online skill gaming platforms. The Indian gaming market is expected to grow from its current valuation of $2.2 billion to $7 billion by 2026. The government has set up an inter-ministerial task force (IMTF) and MeITY has held consultations on regulating the industry. It is the sunrise sector with significant potential for overall economic growth, employment opportunities and contribution to the government’s vision of a trillion-dollar digital economy by 2025.

The Internet and Mobile Association of India (IAMAI) has issued an open letter urging the Central Government and the GST Council to preserve the status quo regarding Goods and Services Tax levy on online gaming. Currently, online game companies are charged 18 percent GST over their Gross Gaming Revenue (GGR). The Contest Entry Fees (CEF) are tax free. The Group of Ministers (GoM) which was formed in May last year by the Council recommended a uniform 28 percent levy for all gaming varieties. IAM AI calculates that the implementation of such a recommendation would increase effective taxation by 1,100 percent and destroy the Indian online games industry.

The panel of ministers advising the government on GST for online gaming, casinos, and horse racing will meet again on July 12. The panel will finalise recommendations on the tax rates for these activities. Online gaming industry associations are concerned about the proposed tax on Full Contest Pool rather than on Gross Gaming Revenue (GGR). The Government has delayed the decision by 15 days. The final decision is expected to be in favour of the gaming industries. It is hoped that the panel's recommendations will be more favourable to them. They are worried about a higher GST rate of 28 percent as against 18 percent.

GST Council Defers 10 Hike On Online Gaming. Karnataka Chief Minister BS Bommai announced that the decision has been deferred. The GoM on online gaming has another 15 days to discuss the issue. The GST rate on the online games falls within 2 slabs – 18% and 28%. Online games that involve financial betting attract 28% GST, while other online game are taxed at 18%. Online gaming platforms which earn commission are liable to pay GST at the rate of 18 percent on their commission. RSM India director Siddharth Surana believes a higher GST of 28%, as against 18%, would have an impact on profitability and pricing of the internet gamers.

The government has constituted a committee to examine issues related to online gaming. The committee will make recommendations for promulgation of an ordinance to regulate the sector. EGF has already designed and implemented its own code of conduct. The way forward is to formulate a structured gaming law that allows players to enjoy the thrills of online games responsibly, safely, transparently and securely. It will also provide a secure and trustworthy environment. For the players, the industry and government, it is important to develop a regulatory framework defined by progressive policies to monitor and mitigate the possibility of irresponsible gaming and to promote healthy gaming habits.

The e-gaming industry in India is in its infancy. There is a confusion about what is gambling and what it is not. The popular card game rummy is considered a game of skill by the Indian law. Several states have banned real money gaming calling it gambling. The per capita spend on gambling is minimal because most gamers are playing free games such as Candy Crush and chess. However, the industry is seeing investor interest and some M&A activity. Nazara became India's largest mobile entertainment platform and then the first gaming company to list. It is early days for e gaming in the country.