Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
10. Registration of local online games providers.
- (1) On and from the appointed day, no local online games provider shall provide any service for the conduct of any online game except in accordance with the certificate of registration duly obtained from the Authority.
- (2) Every local online games provider providing any service for the conduct of any online game, immediately before the appointed day, may continue to provide such service, subject to the general prohibitions contained in Chapter III of this Act, for a period not exceeding ninety days from the appointed day: Provided that such local online games provider applies for registration under this section within a period of thirty days from the appointed day.
- (3) Every application for registration shall be made to the Authority in such form along with such fee as may be prescribed.
- (4) On receipt of an application under sub-section (3), the Authority may, after making such enquiry as it deems necessary, either issue or refuse to issue a certificate of registration: Provided that no application for issue of certificate of registration shall be refused, unless a reasonable opportunity of being heard is given to the applicant.
- (5) Every certificate of registration shall be issued in such form as may be prescribed, subject to the following conditions, namely:—
- (a) The online games provider shall not provide, any online gambling service or allow playing of any online game of chance specified in the Schedule, with money or other stakes;
- (b) The online games provider shall neither allow nor cause to be allowed to play any online game in contravention of the regulations.
- (6) The certificate of registration issued under sub-section (5) shall be valid for a period of three years.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
11. Suspension and revocation of certificate of registration.
- (1) If the Authority is satisfied, either on a reference made to it in this behalf or otherwise that—
- (a) the certificate of registration issued under this Act, has been obtained by misrepresentation or fraud;
- (b) the holder of the certificate of registration has failed to comply with the conditions, subject to which the certificate of registration has been issued; or
- (c) the holder of certificate of registration has contravened any of the provisions of this Act, the rules or the regulations, then, without prejudice to any other proceeding to which the holder of the certificate of registration may be liable, the Authority may, by an order after giving him an opportunity to show cause, revoke the certificate of registration by giving reasons therefor.
- (2) Notwithstanding anything contained in sub-section (1), where the Authority is of the prima facie view that the certificate of registration granted to the online games provider must be suspended, the Authority may, do so for reasons to be recorded in writing, at any time before revoking the certificate.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
12. Appeal.
- (1) Any person aggrieved by an order of the Authority revoking or suspending the certificate of registration under section 11, may prefer an appeal, within fifteen days from the date on which the order is communicated to him, to the Appellate Authority: Provided that the Appellate Authority, may entertain the appeal after expiry of the said fifteen days period, if it is satisfied that there was sufficient cause for not filing it within that period.
- (2) The Appellate Authority, after giving a reasonable opportunity of being heard to the appellant, shall decide the appeal as expeditiously as possible, but in any case not later than one month from the date of receipt of the appeal.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
13. Establishment of Appellate Authority.
- (1) The Government may, by notifi cation, establish an Appellate Authority, which shall consist of a Chairperson and not more than two other members.
- (2) A person shall not be qualified for appointment as the Chairperson of the Appellate Authority unless he is a retired Judge of a High Court, or is a person who is qualifi ed to be a Judge of a High Court.
- (3) The qualifications for appointment of the members of the Appellate Authority shall be such as may be prescribed.
- (4) The Chairperson and the members of the Appellate Authority shall receive such salary and allowances as may be determined by the Government.
- (5) The Government may, in consultation with the Appellate Authority, provide such officers and employees, as deemed necessary, to the Appellate Authority, for the efficient discharge of its powers and functions under this Act.
- (6) Subject to the provisions of this Act, the Appellate Authority may regulate its own procedure. CHAPTER-V. REGULATIONS FOR NON-LOCAL ONLINE GAMES PROVIDERS.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
14. Restrictions.
- (1) No Non-local online games provider shall,—
- (a) provide any online gambling service;
- (b) allow playing of any online game of chance specified in the Schedule, with money or other stakes; or
- (c) allow playing of any other online game contrary to the regulations, Restrictions. in this State.
- (2) No Non-local online games provider shall be deemed to have contravened sub-section (1), if he has exercised due diligence or has provided geo -blocking in this State for the purpose.
- (3) For the purpose of sub-section (2), a Non-local online games provider shall be deemed to have exercised due diligence if it had,—
- (a) informed prospective customers that the State prohibits online gambling and playing of certain online games to customers who are physically present in this State;
- (b) required the customers to enter into contracts with an express condition that the customers shall not use the service, if they are physically present in this State;
- (c) required the customers to provide personal details suffi cient to establish that they were not physically present in this State;
- (d) obtained data that indicated that the customers were not physically present in this State when the relevant customer accounts were opened and throughout the period when the service was provided to the customers; and
- (e) taken all other reasonably practicable measures to ensure that no person physically present in this State could have access to online gambling service or to online games of chance prohibited under section 7.,
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
15. Procedure to deal with noncompliance of restrictions.
- (1) Any Non-local games provider who fails to comply with any of the restriction specified in section 14 shall be issued with a show cause notice by the Authority in such form and manner, as may be prescribed, to furnish a reply within such period as may be prescribed. If no reply is received or if the reply received is not satisfactory, the Authority may proceed in accordance with sub-sections (2) and (3).
- (2) The Authority shall make a recommendation to the Government to request the Central Government, or as the case may be, the officer specially authorized by the Central Government in this behalf, to exercise the power under section 69-A of the Information Technology Act, 2000 [Central Act 21 of 2000] to block access to persons in this State to the service provided by the Non-local online games provider: Provided that,—
- (a) the Government may, for reasons to be recorded in writing, refuse to act on the recommendation of the Authority; or
- (b) where the Government accepts the recommendation of the Authority, it shall ordinarily make a request to the Central Government within fifteen days from the date of receipt of the recommendation.
- (3) A copy of the recommendation made by the Authority under sub-section (2), shall be provided to the Non-local online games provider concerned. CHAPTER-VI. OFFENCES AND PENALTIES.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
16. Penalty for contravention of sections 7, 8, 10 and 14.
- (1) Any person who indulges in online gambling or plays any online game of chance specified in the Schedule, with money or other stakes in contravention of section 7 or plays any other online game in contravention of the regulations shall be punished with imprisonment for a term which may extend to three months or with fi ne which may extend to fi ve thousand rupees or with both.
- (2) Any person who makes or causes to make advertisement in any media, in contravention of section 8, shall be punished with imprisonment for a term which may extend to one year or with fi ne which may extend to five lakh rupees or with both.
- (3) Any person who provides, online gambling service or any online game of chance specified in the Schedule with money or other stakes or any person who contravenes the provisions of sub-section (1), (2) or (5) of section 10 or section 14 shall be punished with imprisonment for a term which may extend to three years or with fine which may extend to ten lakh rupees or with both: Provided that a Non-local online games provider shall be punished for contravention of section 14, only if the Central Government or an offi cer specially authorised by it in this behalf, exercises the power under section 69-A of the Information Technology Act, 2000. Central Act 21 of 2000 [Central Act 21 of 2000].
- (4) (a) If any person convicted of an off ence under sub-section (2) is again convicted of an off ence under the same provision, he shall be punished with imprisonment for the second and for every subsequent off ence for a term which shall not be less than one year, but may extend to three years and shall also be liable to fi ne which shall not be less than five lakh rupees, but may extend to ten lakh rupees.
- (b) If any person convicted of an off ence under sub-section (3) is again convicted of an offence under the same provision, he shall be punished with imprisonment for the second and for every subsequent off ence for a term which shall not be less than three years, but may extend to five years and shall also be liable to fi ne which shall not be less than ten lakh rupees, but may extend to twenty lakh rupees.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
17. Cognizance of offences.
No Court shall take cognizance of any off ence punishable under this Act, rules or regulations made thereunder except upon complaint in writing made by a person authorized in this behalf by the Authority.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
18. Power to compound offences.
- (1) Any officer specially empowered by the Government, by notification in this behalf, may accept, from any person who has committed an offence under sub-section (1) of section 16, by way of composition of such offence, a sum of money not exceeding the maximum amount of fine specified for such offence but not less than fifty per cent of the said amount.
- (2) On payment of such sum of money to such officer, the accused person, if in custody, shall be discharged and no further proceedings shall be taken against him in respect of such offence.
- (3) The compounding of an offence under sub-section (1) shall be allowed only once for any person.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
19. Offences by companies.
- (1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in-charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
- (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company including key managerial personnel as defined in the Companies Act, 2013 [Central Act 18 of 2013], such director, manager, secretary or other officer including key managerial personnel, shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.— For the purposes of this section, —
- (a) “company” means any body corporate and includes a firm or other association of individuals; and
- (b) “director” in relation to a firm, means a partner in the firm. CHAPTER-VII. MISCELLANEOUS.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
20. Chairperson, members, officers and employees of Authority and Appellate Authority to be public servants.
The Chairperson, every member of the Authority and of the Appellate Authority, officer or any other employee of the Authority and of the Appellate Authority shall, when acting or purporting to act in pursuance of any of the provision of this Act be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code [Central Act XLV of 1860].
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
21. Protection of action taken in good faith.
No suit, prosecution or other legal proceeding shall lie against any public servant in respect of anything which is done in good faith or intended to be done in the discharge of his official functions or in exercise of his powers under this Act, the rules, or the regulations.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
22. Act not in derogation of any other law.
The provisions of this Act shall be in addition to, and not in derogation, of the provisions of any other law, for the time being in force.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
23. Presumption as to online game of chance and power to amend Schedule.
- (1) For the purposes of this Act, any online game specified in the Schedule shall be presumed to be an online game of chance.
- (2) The Government may, by notification, omit or add any online game in the Schedule, on the recommendation of the Authority and upon issue of such notification, the Schedule shall be deemed to be amended accordingly.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
24. Power to make rules.
- (1) The Government may make rules for carrying out all or any of the purposes of this Act.
- (2) (a) All rules made under this Act shall be published in the Tamil Nadu Government Gazette and, unless they are expressed to come into force on a particular day, shall come into force on the day on which they are so published.
- (b) All notifications issued under this Act shall, unless they are expressed to come into force on a particular day, shall come into force on the day on which they are so published.
- (3) Every rule made or notification or order issued under this Act shall, as soon as possible, after it is made or issued, be placed on the table of the Legislative Assembly, and if, before the expiry of the session in which it is so placed or the next session, the Legislative Assembly makes any modification in any such rule or notification or order, or the Legislative Assembly decides that the rule or notification or order should not be made or issued, the rule or notification or order shall, thereafter, have effect only in such modified form or be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification or order.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
25. Power to remove difficulties.
If any difficulty arises in giving effect to any provision of this Act, the Government may, by an order published in the Tamil Nadu Government Gazette, make such provisions not inconsistent with the provisions of this Act as may be necessary or expedient for removing the difficulty:
Provided that no such order shall be made after the expiry of two years from the date of the commencement of this Act.
Chapter IV REGULATIONS FOR LOCAL ONLINE GAMES PROVIDERS.
26. Repeal.
The Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Ordinance, 2022 [Tamil Nadu Ordinance 4 of 2022] is hereby repealed.
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