Tamil Nadu Introduces New Regulations for Real-Money Gaming
Tamil Nadu has implemented new rules for real-money gaming platforms, tightening access restrictions and verification requirements. The move comes amid increasing scrutiny on the industry, which is already facing higher GST rates. As per the Tamil Nadu real-money gaming regulations and the Tamil Nadu Online Gaming Authority’s guidelines, these new regulations are designed to regulate the real-money gaming sector and address concerns around player safety and financial transparency.
- Platforms must enforce ‘blank hours’ between midnight and 5 AM, prohibiting logins during this period
- Minors are banned from participating, and players must be allowed to set daily, weekly, and monthly spending limits
- Additionally, gaming apps must display pop-up alerts every 30 minutes, warning users about prolonged playtime and potential addiction.
Mandatory KYC Verification and Regulatory Oversight
The new rules mandate Know Your Customer (KYC) verification at the time of account creation, requiring Aadhaar-based authentication along with OTP verification. These regulations apply specifically to real-money games where users deposit money or assets with the expectation of winning cash or rewards.
Regulatory oversight falls under the Tamil Nadu Online Gaming Authority, established in August 2023. Chaired by retired IAS officer Md. Nasimuddin, the body is responsible for licensing platforms, monitoring compliance, and addressing grievances. It also has the authority to identify and suspend games of chance deemed risky.
Legal and Industry Concerns
The Tamil Nadu government had previously banned online rummy and poker in April 2023, classifying them as games of chance. However, the Madras High Court overturned the ban in November, allowing the state to regulate gaming hours and age restrictions instead.
Industry experts have raised concerns over the feasibility of the new rules. Lawyer Jay Sayta called the midnight-to-5 AM restriction arbitrary, arguing that existing deposit limits and warning messages already provide protection. He also pointed out that the absence of defined spending limits could lead to inconsistent policies across platforms.
India’s Lack of Uniform Gaming Regulations
At the national level, India lacks a standardised regulatory framework for online gaming. The Ministry of Electronics and Information Technology (MeitY) had proposed self-regulatory organisations under the IT Act, 2021, but later scrapped the plan.
Despite regulatory uncertainty, the gaming industry continues to expand. A report by Lumikai estimates that the sector generated $3.8 billion in revenue in FY24, a 22.6% increase from the previous year, with real-money gaming contributing $2.4 billion. The industry is projected to grow at a 20% CAGR, surpassing $9.2 billion by FY29.
Tamil Nadu’s latest rules on real-money gaming bring key changes, including KYC verification, restricted play hours, and spending limits. Ensuring compliance with these requirements is essential. Vakilsearch offers expert guidance on regulatory obligations, helping you meet the new requirements effectively.
For legal support, visit Vakilsearch today.
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