The online real-money gaming industry in India faces yet another regulatory challenge as Tamil Nadu introduces stringent rules aimed at curbing excessive gaming and ensuring responsible player behaviour. The Tamil Nadu Online Gaming Authority has mandated several restrictions, including ‘blank hours,’ mandatory KYC norms, and prohibitions on minors, reflecting the state’s firm stance on regulating real-money gaming platforms.
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Key Regulatory Measures
As per the rules issued by the Tamil Nadu Online Gaming Authority, real-money gaming platforms must implement the following measures:
1. Enforced ‘Blank Hours’ Between Midnight and 5 AM
Real-money gaming platforms must disable login access for players between 12 AM and 5 AM. This move aims to curb excessive gaming habits and promote responsible play.
2. Mandatory KYC Verification
During account creation, all players must complete a Know Your Customer (KYC) verification. This verification process requires Aadhaar authentication and a secondary One-Time Password (OTP) verification.
3. Ban on Minors
Minors are strictly prohibited from engaging in real-money gaming activities. Platforms must ensure age verification before allowing account creation.
4. Monetary Limits and Cautionary Messages
- Players must be given options to set daily, weekly, and monthly monetary limits.
- Platforms should display pop-up caution messages when a player has been gaming for more than an hour, with subsequent reminders every 30 minutes.
- Real-money gaming apps must continuously display warning messages about the addictive nature of online gaming, such as “ONLINE GAMING IS ADDICTIVE IN NATURE” on login pages.
- Whenever a player deposits money, the platform should display the fixed monetary limit and the amount spent so far in reasonably bold letters.
5. Regulatory Oversight by the Tamil Nadu Online Gaming Authority
The Tamil Nadu Online Gaming Authority was established in August 2023 and chaired by retired IAS officer Md. Nasimuddin is responsible for:
- Regulating online games and issuing registrations to platforms.
- Identifying and suspending games of chance.
- Resolving grievances and complaints against gaming providers.
Implications for the Gaming Industry
Who is Affected?
These regulations apply exclusively to online real-money games in which users deposit money or assets to win rewards. This aligns with similar amendments to the Union Government’s IT Act, 2021 regarding online gaming.
The industry’s key concern is the enforcement of these rules within a single state, which could lead to differing regulations across other Indian states. Additionally, the absence of defined spending limits in the new guidelines means individual companies may set their thresholds, leading to inconsistencies across platforms.
Legal and Industry Reactions
Gaming law expert Jay Sayta commented, “The provision of blank hours from 12 AM to 5 AM seems arbitrary, especially since deposit limits and appropriate warnings are already mandated.” He also highlighted potential compliance challenges, given that different states may introduce varying regulations, making uniform implementation complex.
No Uniform Gaming Regulations Yet
Despite Tamil Nadu’s strict measures, India has yet to establish a standardized regulatory framework for the online gaming industry. In April 2023, the Ministry of Electronics and Information Technology (MeitY) introduced amendments to the IT Act 2021, which initially proposed multiple self-regulatory organizations (SROs) to determine the legality of real money games. However, this plan was later reportedly dropped.
The Growing Indian Gaming Industry
According to a report by gaming and interactive media venture fund Lumikai:
- The Indian gaming industry generated $3.8 billion in revenue in FY24, marking a 22.6% growth from $3.1 billion in FY23.
- Of this, $2.4 billion came from the real-money gaming segment.
- The sector is projected to cross $9.2 billion by FY29, with an estimated CAGR of 20% over the next five years.
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Conclusion
Tamil Nadu’s new gaming regulations significantly shift India’s approach to real-money gaming governance. While these rules aim to promote responsible gaming, they also pose compliance challenges for gaming companies operating in different states. As the industry grows, the need for a unified regulatory framework becomes even more critical to ensure consistency and sustainability.
Reference
Original article by Moneycontrol: Tamil Nadu’s new rules for real-money games
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