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RMG industry divided over Tamil Nadu’s online gaming regulations

The Real Money Gaming (RMG) industry is currently navigating a complex landscape following the enforcement of the Tamil Nadu Online Gaming Authority (TNOGA) Regulations, 2025. These regulations, effective from their publication date in the Tamil Nadu Government Gazette, have introduced stringent measures aimed at regulating online real-money gaming within the state. The industry’s response has been mixed, with operators expressing concerns over compliance challenges and potential operational disruptions.

Restricted Gaming Hours: Operators are mandated to enforce a “blank hours” period from midnight to 5 AM, during which players are prohibited from accessing real-money games.

Age Restrictions and Verification: Individuals under 18 years are barred from participating in online real-money games. Platforms must implement robust Know Your Customer (KYC) processes, including Aadhaar-based verification, to authenticate user identities.

Player Protection Measures: Operators are required to display pop-up warnings after one hour of continuous gameplay, with subsequent alerts every 30 minutes, cautioning players about potential addiction risks. Additionally, platforms must enable users to set daily, weekly, and monthly spending limits and provide transparent access to their transaction histories.

The immediate enforcement of these regulations has left RMG operators striving to align their platforms with the new requirements. A legal expert highlighted the urgency, stating, “RMG operators must comply with the regulations once the gazette is published. Failure to do so could result in criminal liability for the companies.”

The mandate to restrict gaming access during specified hours has been particularly contentious. Industry stakeholders argue that such measures may inadvertently drive players towards unregulated platforms, undermining the objective of responsible gaming. Jay Sayta, a technology and gaming lawyer, noted, “The provision enforcing blank hours from 12 AM to 5 AM appears somewhat arbitrary, especially given that appropriate warnings and deposit limits are already required.”

The requirement for Aadhaar-based KYC verification has also raised operational concerns. Implementing such stringent verification processes exclusively in Tamil Nadu poses technical challenges for operators, especially those functioning on a national scale. The absence of uniform regulations across states exacerbates these difficulties, leading to potential inconsistencies in user experience and compliance standards.

In response to the regulatory hurdles, several RMG federations and operators are contemplating legal action against the Tamil Nadu government. The primary contention revolves around the perceived arbitrariness of certain provisions and the feasibility of implementing state-specific regulations in a digitally borderless industry. An industry insider revealed, “RMG operators may choose to halt their operations in the state until their technology is updated to meet the regulations.”

The unfolding scenario in Tamil Nadu underscores the pressing need for a cohesive national framework governing online real-money gaming. Such a framework would aim to harmonize regulations, ensuring player protection while fostering industry growth. As the situation develops, the outcomes in Tamil Nadu could set significant precedents, influencing regulatory approaches in other jurisdictions and shaping the future trajectory of the RMG industry in India.

Key Highlights:

  • Regulatory Enforcement: Tamil Nadu has implemented the TNOGA Regulations, 2025, introducing strict controls over online real-money gaming.
  • Operational Challenges: RMG operators face difficulties adapting to mandates such as restricted gaming hours and Aadhaar-based KYC verification.
  • Industry Pushback: Stakeholders are considering legal challenges, citing concerns over the practicality and fairness of the new regulations.
  • Call for Uniformity: The situation highlights the necessity for a unified national policy to govern the online gaming sector effectively.
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