Tamil Nadu has banned online gaming involving winning or losing real money, wagering and betting on the internet. An ordinance by the Governor said those found guilty will be fined Rs 5,000 and can be jailed for six months.
Anyone caught running shops where people can play betting games online will be fined Rs 10,000 and jailed for up to two years.
The Tamil Nadu government's move to ban online betting games comes after several people died by suicide as a result of losing a big amount of money.
No online game is allowed to use electronic funds transfer, which can be used for betting, and there can be no prize money, according to the ordinance.
Tamil Nadu Governor Banwarilal Purohit backed the ordinance after the state government sought his help to ban online betting games.
Last month, Andhra Pradesh Chief Minister YS Jagan Mohan Reddy had also asked Union Law Minister RS Prasad to block 132 websites in the state to stop online gambling.