GST-Struck Gaming Industry is Facing a Second, Bigger Front 

While waiting for the promised tax and regulatory certainty to bring more investments to the sector, India's online gaming industry right now is going through some heavy turbulence in the wake of the sudden turmoil caused by the GST Council's decision to levy 28% GST on the full face value of entry deposits at casinos and online game platforms.

The foundations of a stable national-wide framework of regulations for online real money games has been laid by Centre, but uncertainty now springs around how exactly will the sector's new Self-Regulatory Organisations  draw the line separating "wagering on any outcome" and "permissible online real money games".

However, as all eyes are on the rough waters ahead of the country's online gaming industry on the national level, little attention is paid to the struggles the sector is facing on a second, much larger, diverse and unpredictable front - the one with the states and their varied views on gaming regulations and bans.

The Sector is Going Proactive on the Level of States

"Taking a proactive approach, AIGF, EGF, and FIFS have expressed their intent to initiate communication with the governments of several states, including Tamil Nadu, that are supportive of gaming prohibitions," SevenJackpots News' Nikolay Nikolov writes in a recent article pointing to the efforts by India's three major online gaming federations to bring clarity on the states' front.

"The homegrown gaming industry is concerned that certain States such as Odisha, Assam, and Telangana might disregard the new central rules, which prescribe that SROs will determine what games are permissible real money online games and impose additional bans," Nikolov explains.

The article in SevenJackpots News reports that some unofficial assurances of support have been received from Meity (the Ministry of Electronics & IT) who are ready to back the industry up during interactions with state governments.

“If there are some state governments that are not getting on board, the industry can flag it with the Centre, and the ministry will make the effort of raising it with the states thereafter,” a Meity source said.

TN Among Many States that Doesn't Look Happy to Get "On Board"

Any help from Central authorities might come in handy indeed with a number of states, and not just Tamil Nadu, as the likes of Karnataka, Maharashtra, and even brick-and-mortar casino haven Goa are mulling over their own specific prohibitions to online gambling and gaming.

Tamil Nadu has been swinging between a "no ban" and an "active ban" status for the last few years, but now the State Finance Minister Thangam Thennarasu went so far as to demand central tax legislation to not include in its definition of "online money gaming" games which are currently forbidden by an active law in any state.

He was referring to TN's recently renewed prohibition on online games rummy and poker which have been declared by many courts to be games of skill. The ban is currently active, but is being contested in court by the gaming industry and it is difficult to predict when and if it will get quashed.

Karnataka has Decided to Follow Tamil Nadu

SevenJackpots News also reports that Karnataka is planning to keep following the steps of Tamil Nadu and swing back to an online gaming ban after the state's initial prohibition was brought down by the court in 2022.

The article points to the fact that the Karnataka government has initiated some cyber awareness programs to inform the public about the various risks that one can stumble upon in the internet including gambling addictions.

Maharashtra Might Finally Decide on Online Games by Banning Them

Maharashtra has been indecisive about its stance on gambling ever since the state adopted a law to regulate and tax casinos more than three decades ago, which, however, was never implemented.

Now, the government led by Deputy Chief Minister Devendra Fadnavis has proposed the ill-fated law to be abolished and replaced by new legislation banning gambling and particularly online gambling.

“We won’t allow online gambling. In fact, we won’t allow any kind of gambling. I had signed a proposal to repeal a 30-year-old law allowing casinos in Maharashtra. We shall now bring in new legislation to repeal the act,” Fadnavis said.

Casino Haven Goa Could Join Online Gaming Bans

A piece of news from a surprising source might witness Goa join the wave of bans on online games for real money, or at least the state's Chief Minister Pranod Sawant has agreed to look into the matter and examine Tamil Nadu's latest gaming ban.

CM Sawant was replying to a question raised by the opposition in the Goa Legislative Assembly on the topic of illegal gambling apps being played by young Goans.

“I will check on the Act the Tamil Nadu government has passed. I will ask the department to also study it. If there is a need, I am ready to do it,” Sawant told the MLAs.