Tamil Nadu slaps strict regulations on real money gaming sector

The Tamil Nadu Online Gaming Authority (TNOGA) has introduced new measures to regulate the time and money spent by players on online real-money games, as well as the imposition of dark hours between midnight and 5 am.

The Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025, also prohibits minors under 18 from playing online real money games.

The move is likely to trigger a wave of similar actions from other states, according to gaming associations and legal experts Business Standard reached out to.

Experts have said that these rules are also likely to lead to the fragmentation of regulations across states due to the lack of central oversight for online gaming and real-money games.

According to the regulations, know your customer (KYC) verification is required for account creation. The initial login must be authenticated using Aadhaar-based verification, including a one-time password sent to the linked phone number.

Online game providers must implement the KYC verification process and display pop-up caution messages if a player plays continuously for more than an hour. These messages will reappear every 30 minutes to inform users of their playtime.

Players must have options to set daily, weekly, and monthly monetary limits. Whenever money is deposited, a pop-up message will indicate the user’s limit and the amount spent so far.

Caution messages on the addictive nature of online gaming must be displayed on the login page of gaming platforms. The message “Online gaming is adductive in nature” will appear prominently.

Real money games will be restricted between midnight and 5 am. No logins will be allowed during these hours.

The regulations seek to regulate online gaming practices and ensure compliance from gaming providers.

TNOGA, a five-member regulatory authority, was set up by the state government in August 2023. Chaired by retired IAS officer Md. Nasimuddin, the authority has powers to regulate online games, issue registrations and oversee the functioning of local online gaming providers, identify games of chance for suspension, and resolve any grievances or complaints received against any gaming provider.

No uniform gaming rules yet
TNOGA’s new rules come at a time when India is yet to implement a comprehensive regulatory framework for the sector.

In April 2023, the Ministry of Electronics and Information Technology (MeitY) notified gaming-related amendments to the IT Act, 2021, which allowed multiple self-regulatory organisations (SROs) to determine whether a real-money game could be permitted in India or not. But, the ministry later reportedly dropped the SRO plan.

Roland Landers, CEO of skill gaming industry body All India Gaming Federation, told Moneycontrol that substantial progress has been made toward player protection, fostering innovation, and furthering the sector’s growth in these guidelines

“It is commendable that many provisions mirror the MeitY rules or borrow language from them, creating a degree of regulatory consistency…While some aspects of the new rules may require further deliberation by the industry to assess their operational impact, we look forward to continued engagement to create a balanced and progressive regulatory framework,” he said.

Landers further added, “However, the biggest threat to players, the economy, and national security remains offshore illegal gambling apps, which operate outside Indian regulations and put users at risk. Addressing this menace requires a collaborative effort between the industry and authorities to develop effective solutions.”

The Indian gaming industry reported revenues of $3.8 billion for the financial year 2024, a 22.6% growth from $3.1bn in FY23, according to a report by the gaming and interactive media venture fund Lumikai. Of the $3.8bn in revenue, about $2.4bn came from the real-money gaming segment.

The report also said the sector is estimated to cross $9.2bn in revenue by FY29 at a 20% CAGR over the next five years.

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