[3 patti cash]Meghalaya Regulates Online Gaming

  In a pursuit to embrace the gaming industry at its core just

  like its sister States Nagaland and Sikkim, the Government of

  Meghalaya has decided to adopt a license based regime for

  regulation of gaming and gambling in the territory of the state.

  The Honourable Government of Meghalaya has published the

  Meghalaya Regulation of Gaming Act, 2021

  (Meghalaya Act No. 9 of 2021) (hereinafter referred to as the

  ”Act”) on March 26, 2021.1 Amidst the ambiguity on the

  Central legislation governing online gaming in India, promulgation

  of the said Act has rather served as a stroke of luck for all the

  stakeholders in the gaming sector and people seeking leisure

  indulgences.

  The Act aims at regulating both ‘games of

  skill’ and ‘games of chance’ involving

  betting or wagering of money or money’s worth however

  precluding the following:

  Game of Arrow Shooting called Teer being regulated through

  Meghalaya Regulation of the Game of Arrow Shooting and the Sale of

  Teer Tickets Act, 2018 and;

  Lotteries regulated under the Meghalaya Lottery (Regulation)

  Rules, 2019;

  The Act has further withdrawn the applicability of Meghalaya

  Prevention of Gambling Act, 1970 to the Games of Skill or Games of

  Chance licensed under the said Act.

  It is imperative to shed some light on this welcome

  move of the Meghalaya Government in the wake of the booming gaming

  industry in India:

  Application to obtain the Gaming License: The

  License under this Act shall be issued only to an Indian citizen or

  legal entity incorporated in India. An applicant for the License

  has to file an application to the State Government to obtain the

  License in such form and manner as prescribed by the Government

  along with the prescribed License fees. The Licensing Authority

  shall accept or reject such Application on its Discretion. The

  License once granted, shall remain in force for five years from the

  date of grant of the said License after that renewal has to be

  applied for.

  Gaming Royalty: The Licensee shall also pay to

  the Licensing Authority “Gaming Royalty” from time to

  time at regular intervals. Gaming Royalty refers to a percentage

  sum of money of Gross Gaming Revenue which is a sum of total amount

  of all bets made and the revenue generated from advertising,

  marketing and promotion under this Act minus the value of

  all winnings and prizes, bonuses and discounts and cash backs, as

  well as the payment gateway and banking charges in the course of

  the gaming period.

  Establishment of Meghalaya Gaming Commission:

  Meghalaya State Commission shall be monitoring the gaming

  activities of all the Licensees and ensuring compliances under this

  Act. The Commission shall also be responsible to issue policy

  directions for regulating games of skill and games of chance to be

  played in fair and transparent manner which after approval of the

  State Government shall be binding on all the Licensees.

  Determining “Games of Skill” and “Games

  of Chance”: Under this Act, Games of Skill

  are defined as all such games where preponderance of skill over

  chance, including where the skill related to strategizing the

  manner of placing wagers or placing bets or where the skill lies in

  team selection or selection of virtual stocks based on analyses or

  where the skill relates to the manner in which the moves are made,

  whether through deployment of physical or mental skill and acumen,

  where the success in game depends on the existence of superior

  knowledge, training attention, experience and adroitness of a

  player for example; Bingo, Black Jack, Bridge, Poker, Poker Dice,

  Rummy, Solitaire, Teen Patti, virtual sports fantasy league games

  etc. whereas Games of Chance mean all such games where

  there if preponderance of chance over skill for example; Baccarat,

  Craps, Keno, Roulette, Slots etc. These games shall be conducted

  through non-restricted geo-fenced internet or at a physical

  premises.

  Offences and Penalties to be paid for

  breach:

  S. No.

  Offences

  Penalties

  1

  Contravention of provisions of this Act

  Not exceeding INR 2 Lakh

  2

  Breach of the License by Player while playing any

  Games of skill or chance at the approved website or physical

  premises.

  Not exceeding INR 10, 000 for first three

  violations and thereafter shall be prohibited in gaming under this

  Act.

  3

  License obtained by furnishing incorrect

  information.

  Not exceeding INR 2 Lakh

  4

  Deliberate mis-declaration to the Licensing

  Authority.

  Not exceeding INR 2 Lakh

  5

  Failure to submit statement of accounts to the

  Government required by this Act or submission of incorrect

  statements.

  Not exceeding INR 2 Lakh

  6

  Issuance of misleading advertisement.

  Not exceeding INR 1 Lakh

  7

  Operation of gaming without the License

  Not exceeding INR 10 Lakh with imprisonment which

  may extend for a period of up to two years.

  The progressive approach adopted by the State Government of

  Meghalaya has proved out to be a significant step towards

  liberalizing gaming operations in India amidst the blanket ban in

  some States like Andhra Pradesh, Telangana and Tamil Nadu. In

  addition to the sustaining of revenue generation to the Meghalaya

  State Government, this newly formed license-based regime of

  physical and online gaming will also generate employment and cater

  recreational needs of people at large.

  Footnote

  1. Available at

  http://meglaw.gov.in/Notification/LL_(B)_46_2020_70_Dated_Shillong_the_26th_March_2021.pdf

  For further information please contact at S.S Rana &

  Co. email: info@ssrana.in or

  call at (+91- 11 4012 3000). Our website can be accessed at

  www.ssrana.in

  The content of this article is intended to provide a general

  guide to the subject matter. Specialist advice should be sought

  about your specific circumstances.

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