TN gaming rules may spur similar action by other states, add biz hurdles

These rules are also likely to lead to fragmentation of rules across these states as there is a lack of central regulation for online gaming and real money games

The Tamil Nadu Online Gaming Authority’s (TNOGA’s) decision to regulate the time and money spent by players on online real-money games, as well as the imposition of dark hours between midnight and 5 am, is likely to trigger a wave of similar actions from other states, gaming associations and legal experts said.

 

Experts have said that these rules are also likely to lead to the fragmentation of regulations across states due to the lack of central oversight for online gaming and real-money games.

 

“There is a need for greater clarity on implementation timelines, as the industry will require time to adapt to the technical changes mandated by the new rules. Another key concern is the growing fragmentation of regulations across states, which creates operational complexities and inconsistencies in compliance,” Roland Landers, chief executive officer of the All India Gaming Federation, said.

 

Earlier this month, TNOGA issued a series of directives to be followed by online real-money gaming platforms. These rules will take effect from the date of their publication in the official gazette of the state.

 

In its order, TNOGA has said that users below the age of 18 shall be barred from playing online real-money games. Further, know-your-customer verification will be mandatory for all players at the time of registration on gaming platforms.

 

The order also mandates that online gaming platforms must “display pop-up caution messages” if a player plays a game for more than an hour, with such messages appearing every 30 minutes.

 

A daily, weekly, and monthly monetary limit per player per game must also be set by these platforms, with a tracker for the total limit and the amount spent during that period, TNOGA said. There will also be a five-hour “blank” period between midnight and 5 am when logins to games will not be allowed at all, the gaming authority said in its order.

 

Despite the intent of the regulation — aimed at protecting players, especially minors, from excessive gaming and financial risks — it will be difficult for the state to enforce these rules both at a policy and technical level, experts said.

 

“As we navigate this complex issue, we must consider the potential consequences of technological feasibility and ensure that any measures taken are proportionate, effective, and respectful of individual rights,” Kazim Rizvi, founder of the technology policy advocacy group The Dialogue, said.

 

TNOGA’s directive on the five-hour dark period, during which platforms will not be allowed to let players log in, is also likely to push users toward illegal and illegitimate gaming and gambling platforms, thereby increasing risks for players, Abhay Raj Mishra, president of Prahar, a New Delhi-based non-governmental organisation, said.

 

“The distinction between real-money games and non-money games is flawed. Non-money games, especially video games targeting children, are equally, if not more, concerning as they shape behaviours during a critical stage of development. Clear, consistent regulations are crucial to safeguarding the interests of all,” Mishra told Business Standard.

 

TNOGA’s key recommendations

 

> Users below 18 barred from playing real-money games

> KYC verification mandatory for account creation

> Pop-up caution messages for prolonged gaming

> Daily, weekly, and monthly caps on funds

> No gaming logins allowed from midnight to 5 am