Google Pay Diwali stamps and scratch cards banned in this Indian state

In what could be bad news for Google Pay users in Tamil Nadu, Google's UPI payments app has stopped offering all form of rewards including scratch cards and Diwali stamps in the state of Tamil Nadu. So if you are in Chennai or any part of Tamil Nadu for that matter, you will no longer receive any form of Google Pay rewards. According to reports, Google Pay violates the lottery ban rule in Tamil Nadu. In 2003, Tamil Nadu's former chief minister J Jayalalithaa cracked down on the sale of all forms of lotteries across the state, including online, in an attempt to keep people away from gambling.

How does Tamil Nadu's ban on lotteries apply to Google Pay?

While the state authorities believe Google Pay rewards work in a similar fashion like lottery and gambling where people are encouraged to take chances for a reward, Google argues restricting digital products on the grounds of a lottery ban is not as simple as imposing restrictions on a physical (offline) distribution networks, citing 'global scope' for digital products. The search giant also added altering consumer experience for select users is 'far more complicated' since that user experience is delivered on mobile devices which is accessible from anywhere in the country.

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How does this affect Google Pay and its users?

As part of its rewards program, Google Pay users can play games and receive special offers and scratch cards resulting in cash rewards. In June, Google Pay introduced a mobile Cricket game called Tez Shots. It allowed users to score runs and win scratch cards. However, the game was not available for Google Pay users Tamil Nadu. In terms and conditions of Tez Shots, Google Pay mentions: "This offer is not available to residents of the state of Tamil Nadu (as per Tamil Nadu Prize Scheme (Prohibition) Act 1979) and wherever else prohibited by Law. Residents of these states should not participate in this offer."

Google Pay rewards are one of the reasons why there's been a steady increase in terms of the number of transactions on the app. Now that Google has decided to stop offering rewards to its users in Tamil Nadu, there is a possibility that the company might witness a decline in the number of transactions, at least in Tamil Nadu.

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