The robust set of regulations unveiled by the Tamil Nadu Online Gaming Authority (TNOGA) last week signals a new era of vigilance and accountability in the burgeoning online gaming and gambling industry. However, despite its well-intended objectives, these regulations are likely to invite more disputes unless a centralised law is enforced across states.
Industry consultants and legal experts, while appreciating Tamil Nadu’s move to tighten control over online real-money games within the state, warn that it could lead to numerous legal disputes if not supported by a uniform central law that addresses existing loopholes.
Since the primary focus of the Tamil Nadu regulations is to safeguard players, particularly minors, it imposes stringent checks on access and participation.
Apart from Tamil Nadu, other states like Andhra Pradesh, Karnataka, and Kerala have also attempted to introduce restrictive laws in the past. However, state-level regulations have significant limitations. Firstly, these laws can be easily bypassed, and secondly, they are likely to lead to numerous disputes between the industry and the government.
"State-level regulations face significant enforceability challenges. Tamil Nadu's strict rules, for example, can be easily bypassed through VPNs or by accessing platforms in other states, reducing their effectiveness. This lack of uniformity across the states also fuels forum shopping, where gaming companies flock to states with looser regulations, complicating enforcement. Furthermore, these state laws may conflict with some of the central frameworks. A cohesive national regulatory system would streamline compliance and provide the much-needed consistency for the industry." he says.
The most significant shift under these new rules is the absolute prohibition of minors engaging in online real-money games. Additionally, the KYC verification has been made mandatory for anyone wishing to create an account, ensuring that only verified, responsible individuals can access these platforms. Logins will now be monitored through Aadhaar authentication, with further validation via OTP sent to registered mobile numbers, effectively raising the security bar for users.
While these regulations, once published in the official Gazette, will officially come into effect, political observers argue that restricting online gambling is practically impossible with state laws, and such announcements often serve as public relations tactics for the government.
"There is no mechanism to block online games or gambling because geoblocking is difficult to implement state-wise, and in any case, it can be bypassed using VPNs. Similarly, digital payments cannot be regulated on a state-by-state basis," says political observer and blogger Sumant C. Raman.
At the core of the new regulations is a clear definition of "online real-money games"—games where players deposit cash or kind with the hope of earning winnings from their stake. To protect players from the risks of overindulgence, authorities have mandated cautionary pop-up messages after one hour of continuous gameplay. Moreover, gaming platforms must offer users the ability to set their own financial boundaries, such as daily, weekly, and monthly spending limits, thereby empowering individuals to manage their gaming habits.
Though the TNOGA draft requires further clarification, one of the other notable measures is the introduction of restricted gaming hours, with access to platforms banned between 12 a.m. and 5 a.m., promoting healthier, more balanced engagement. Additionally, cautionary messages warning players of the addictive nature of online gaming will be prominently displayed across all platforms, a move aimed at raising awareness and reducing harm.