Gaming News

2023 IT Rules Unenforceable Due to Lack of SRBs – Tamil Nadu’s Online Gaming Regulations Move Forward

Prepend to the content

2023 IT rules unenforceable due to lack of Self-Regulatory Bodies, says govt

The Ministry of Electronics and Information Technology (MeitY) has informed the Madras High Court that the 2023 amendments to the Information Technology (IT) Rules, 2021, remain unenforceable. This is because no self-regulatory bodies (SRBs) have been designated yet, a key requirement for implementing the online gaming provisions.

According to a report by Hindustan Times, this submission was made during the ongoing challenge to the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022. Several gaming companies, including Play Games 24X7, Junglee Games, and Head Digital Works, have opposed the state law. They challenge its mandatory Aadhaar-based Know Your Customer (KYC) verification and restrictions on playing real-money games between midnight and 5 AM. 

Legal expert Jay Sayta highlighted this issue, stating that the MeitY has not taken action to regulate online gaming, rendering the rules unenforceable due to the absence of SRBs.

IT rules, 2023 remain unenforceable

In April 2023, the IT Rules, 2021, were amended to regulate online gaming intermediaries. Under these amendments, MeitY is required to designate at least three SRBs under Rule 4A to verify and regulate online real-money games. However, no SRBs have been notified so far.

“However, given that no SRBs have been designated so far under Rule 4A, IT Rules, 2021, the provisions relating to online gaming under the IT Rules, 2021, including the verification of online games as permissible online games, are not currently enforceable according to Rule 4B, IT Rules, 2021,” MeitY stated in its written submission.

Tamil Nadu can regulate online gaming hours

Despite the lack of enforcement of the central IT Rules, the ministry clarified that state governments, including Tamil Nadu, have the authority to regulate online gaming hours and impose financial limits.

The Tamil Nadu government has imposed restrictions on playing real-money games between midnight and 5 AM. It has also mandated Aadhaar-based KYC verification, which gaming companies have challenged.

The ministry also reiterated that Aadhaar authentication can only be mandated by a law passed by Parliament.

“The authentication of Aadhaar number holder can be made mandatory only under a law made by Parliament, as provided under subsection 7 of section 4 of the Aadhaar Act, 2016,” MeitY stated.

However, online gaming companies can seek permission to use Aadhaar authentication voluntarily. This is allowed under the 2025 amendments to the Aadhaar Authentication of Good Governance (Social Welfare, Innovation, Knowledge) Rules, provided the use-case aligns with the State’s interest.

Govt stresses need for regulation

Union IT Minister Ashwini Vaishnaw has repeatedly stressed the importance of regulating online gaming. Speaking in Parliament on March 19, he highlighted that the IT Rules allow for the creation of SRBs to monitor content and ensure user safety.

“Under intermediary rules, there is a rule which allows for the creation of a self-regulatory body. In those rules, care was taken to ensure that any self regulatory body that is formed must pay attention to five things in particular, no harmful content should be transmitted in online games, children shouldn’t have access to such content, it should not lead to addiction, there must be a mechanism for age-rating, and there must be a mechanism for parental control,” Vaishnaw said in Lok Sabha.

The post 2023 IT Rules Unenforceable Due to Lack of SRBs – Tamil Nadu’s Online Gaming Regulations Move Forward appeared first on G2G News.

You Might Like