CHENNAI: The union government’s new online gaming Bill passed in the Lok Sabha on Wednesday, which bans games of skill and chance played using real money will in effect render state regulatory bodies like the Tamil Nadu Online Gaming Authority (TNOGA) redundant, say observers.
This is despite legislations on betting and gambling falling under the state government’s jurisdiction as per Entry 34 of the state list in the Seventh Schedule of the Constitution.
The Promotion and Regulation of Online Gaming Bill, 2025, does this by stating that online money gaming platforms operate across states and national borders, including offshore servers, which transforms this from a state subject to a “matter of national importance” involving cross-border regulation, digital finance and cybersecurity.
Created in August 2023, the five-member TNOGA has been actively cracking down on online gambling websites and apps, regulating games of skill by coming up with strict rules like making KYC mandatory for players and banning minors, and acting against advertisements of offshore gambling sites or apps in Tamil Nadu. Though a work in progress, industry observers say, this model has seen a considerable degree of success.
For instance, the latest 2025 regulations for Real Money Games even restricted login for gamers from 12am to 5am, which sources said was complied by many gaming companies. The model had met with relative success and was being studied by other states to implement their own regulatory bodies, sources said.
“TNOGA attempted to impose regulatory measures on skill gaming operators after the HC set aside a ban on skill gaming. A regulatory oversight should always be preferred as compared to a complete ban,” said Gowree Gokhale, a lawyer specialising in gaming law.
However, the latest Bill indicates that these powers will now vest with a central authority, which will be the implementing body. Official sources in TN remained guarded and said a clearer picture would emerge soon on the nitty-gritties of the new law.
Experts said though well-intentioned, the powers of state bodies were limited as their jurisdiction is only over one state. “The centre has referred to the difficulty of lack of extra-territorial application of the state law, while passing the Bill. It assumed legislative power over the complete online gaming field. Matters are pending before SC regarding the legislative powers of centre and state. We need to see what the outcome will be,” Gokhale said.
Why has the union government banned all Online Real Money Games?
Causes addiction among children and youth leading to mental health issues, financial losses and eventually suicides
Victims lured into cycle of gaming with little awareness of risks or legal protection
Manipulative practices including opaque algorithms and bots
Platforms employ predatory monetisation tactics, including microtransactions, loot boxes and reward systems
Online money gaming facilitates money laundering, fraudulent financial transactions, illicit activities