Real-Money Gaming Giants Challenge Tamil Nadu’s New Regulations in Court

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Three prominent real-money gaming (RMG) companies—Games24x7, Junglee Games, and Head Digital Works (A23)—have taken the Tamil Nadu government to court over its recent gaming regulations. The companies filed a writ petition in the Madras High Court, challenging the constitutionality of the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025. According to Storyboard18, the gaming firms are seeking an injunction against the newly enforced regulations, which impose time and usage restrictions on RMG platforms.

The new rules, notified by the Tamil Nadu Online Gaming Authority (TNOGA), mandate a “blank hour” period from midnight to 5 AM, during which players cannot access real-money gaming platforms. Additionally, the guidelines require platforms to prohibit minors from participating in real-money games and implement features that allow users to set daily, weekly, and monthly spending limits.

RMG platforms must also display pop-up messages every 30 minutes to warn users about their playtime. These apps should continuously show caution messages, such as “ONLINE GAMING IS ADDICTIVE IN NATURE,” on their login pages. Whenever players deposit money, the platforms must highlight the fixed spending limit and the amount spent so far in “reasonably bold letters.”

Real-Money Gaming Regulations Spark Legal Battle

The companies’ petition calls for the court to declare Sections 5 and 14 of the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, and the 2025 TNOGA regulations as “ultra vires, discriminatory, arbitrary, void, illegal, and unconstitutional.” The petition argues that these rules unfairly target skill-based games, like Rummy and Poker, when played for money.

Non-compliance with these regulations could lead to legal action under Section 16(3) of the Tamil Nadu Prohibition of Online Gambling & Regulation of Online Games Act, 2022. The respondents in the case include the State of Tamil Nadu, the Director General of Police of Tamil Nadu, TNOGA, and the Ministry of Electronics and Information Technology (MeitY).

This legal battle follows a similar conflict in November 2023, when the Madras High Court struck down Tamil Nadu’s previous ban on online money games. The court had ruled that while the state could regulate online gaming through time limits and age restrictions, it could not ban games of skill, like Rummy and Poker, entirely.

Industry stakeholders have expressed concerns about the impact of the regulations. Roland Landers, CEO of the All India Gaming Federation (AIGF), stated, “Some aspects, such as the blackout period, may have unintended consequences and could push users towards offshore gambling platforms.”

The new petitions mark the fourth round of litigation between the Tamil Nadu government and skill-gaming companies. Four petitions have been filed challenging the current regulations. Meanwhile, the Indian gaming industry continues to push for a uniform central regulatory framework. Landers emphasized that “a national framework remains the most effective way to curb illegal offshore gambling while ensuring a safe and transparent environment for users.”

According to a report by Lumikai, a gaming and interactive media venture fund, the Indian gaming industry generated $3.8 billion in revenue for FY24, a 22.6% increase from $3.1 billion in FY23. Of this, around $2.4 billion came from the real-money gaming segment. The report projects the sector to grow to $9.2 billion by FY29, with a compound annual growth rate (CAGR) of 20%.

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