Tamil Nadu Tightens Grip on Real Money Gaming: Industry Seeks Relief

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The real money gaming (RMG) industry in Tamil Nadu faces mounting regulatory pressure as gaming federations struggle to negotiate relief measures for operators. The Tamil Nadu Online Gaming Authority (TNOGA) has made it clear that companies must implement the newly enforced Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025, despite concerns raised by industry stakeholders.

As reported by Economic Times, On Friday, representatives of the All India Gaming Federation (AIGF) met with TNOGA officials but failed to secure any concessions for RMG operators. Similarly, the E-Gaming Federation (EGF), which met with TNOGA officials on Tuesday, was reprimanded before receiving clarification on the regulations. The meeting, attended by TNOGA members Md. Nasimuddin and Dr. M.C. Sarangan, as well as EGF CEO Anuraag Saxena and top RMG operators, underscored the state’s firm stance on enforcing compliance.

A TNOGA spokesperson emphasized the regulatory authority’s commitment to implementation, stating, “The regulations must be followed by all RMG companies.” Sources confirmed that while industry representatives voiced concerns, the regulator insisted that failure to comply would lead to legal consequences.

Regulatory Challenges and Industry Concerns

The new regulations, which came into force on February 12, 2025, include provisions such as mandatory Aadhaar-based authentication, Know-Your-Customer (KYC) compliance, and the imposition of “blank hours” from midnight to 5 AM, during which gaming platforms must be inaccessible. Additionally, gaming companies are required to prevent minors from playing and ensure strict verification processes.

Despite these requirements, many RMG operators are struggling to adapt their systems to comply with Tamil Nadu’s specific regulations without affecting operations in other states. An industry source noted, “Most gaming companies are not yet compliant because implementing a separate regulatory framework for Tamil Nadu is highly complex. Shutting down operations nationwide during restricted hours would result in significant revenue losses.”

Acknowledging these difficulties, TNOGA is reportedly considering industry requests for additional time to comply. A TNOGA spokesperson confirmed, “Companies have expressed their willingness to comply but require time to make necessary software and operational modifications. Their request is under active consideration.”

Legal and Judicial Developments

The compliance debate also comes against the backdrop of legal uncertainty. In November 2023, the Madras High Court ruled against Tamil Nadu’s previous attempt to ban online money games such as Rummy and Poker, deeming it unconstitutional. The court upheld the state’s right to regulate online gaming but clarified that games of skill could not be banned outright.

However, failure to comply with the latest TNOGA regulations could now lead to legal action under Section 16(3) of the Tamil Nadu Prohibition of Online Gambling & Regulation of Online Games Act, 2022. A legal expert, speaking anonymously, stated, “Once the regulations are published in the gazette, operators must comply or face criminal liability.”

Industry’s Next Steps and Court Challenges

As RMG operators navigate this complex landscape, at least two gaming companies are reportedly considering filing legal challenges against the new rules in the Madras High Court. “While larger firms may be able to adapt more quickly, small and medium-sized enterprises (SMEs) require additional time and resources to implement these changes,” said Roland Landers, CEO of AIGF.

Meanwhile, controversy surrounding “opinion trading”—a high-risk gaming segment where users bet on various real-world outcomes, such as cricket scores or cryptocurrency prices—continues to escalate. Social groups opposing online money games have called for stricter regulation of such platforms. The Supreme Court recently issued a notice regarding a petition challenging “opinion trading” apps, with the case set for hearing on March 21, 2025.

Conclusion

The Tamil Nadu government’s stringent regulations on real money gaming reflect growing political and social concerns over the sector. While TNOGA appears open to discussions on compliance timelines, it remains firm on enforcement. With legal battles looming and industry stakeholders scrambling to adjust, the future of online money gaming in Tamil Nadu hangs in the balance.

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