The Tamil Nadu Online Gaming Authority has now issued a new set of norms governing real money online games in the state.
The new rules, called Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025, bars minors (under the age of 18) from playing online real money games. In addition, the new provisions restrict real money online games between midnight and 5 AM and no logins will be permitted during the said hours.
The rules further mandate know your customer (KYC) verification for account creation, and the onus of the implementation of the verification process will lie with the online gaming platforms. The rules also note that the initial login into the account will have to be authenticated using Aadhaar-based verification, including a one-time password sent to the linked phone number.
Besides, the gaming platforms will also have to display pop-up messages, cautioning users if they play continuously for more than an hour. Thereafter, these messages will continuously reappear after every 30 minutes to inform users of their play time.
In addition, online real money gaming platforms have also been directed to “prominently” display the message “Online gaming is adductive in nature” on their login pages.
On top of this, the rules also mandate platforms to provide an option for the users to set daily, weekly, and monthly monetary limits. As per the new regulation, a pop-up message, indicating the user’s limit and the amount spent so far, will also have to be displayed whenever money is deposited into a customer’s wallet.
The new norms have been envisaged with regulating online gaming practices and ensuring compliance by online gaming platforms.
Meanwhile, industry body All India Gaming Federation’s (AIGF) CEO Roland Landers, speaking with Moneycontrol, commended the rules, but added that further deliberation by the industry to assess the operational impact of the new rules.
“It is commendable that many provisions mirror the MeitY rules or borrow language from them, creating a degree of regulatory consistency…While some aspects of the new rules may require further deliberation by the industry to assess their operational impact, we look forward to continued engagement to create a balanced and progressive regulatory framework,” he reportedly said.
Nevertheless, the new regulatory framework is expected to have a direct bearing on the top line of the online gaming companies, especially the blanket ban between midnight and 5 AM.
This comes at a time when the sector has already been grappling under the impact of the flat 28% goods and services tax (GST), imposed in 2023, on the total value of bets for online games, irrespective of whether they are games of skill or chance. Previously, a lower 18% GST was levied, specifically on the platform fee for skill-based games.
This also follows the Supreme Court (SC) last month temporarily halting GST proceedings against 49 real money gaming companies and staying retrospective demand notices, which sought taxes on the full face value of bets placed through the gaming platforms.
Online gaming companies were issued 71 show cause notices for alleged evasion of GST to the tune of INR 1.12 Lakh Cr during 2022-23 and the first seven months of 2023-24. Multiple online gaming companies, including Gameskraft, Dream11, Games 24×7, and Head Digital Works, have moved the SC to seek a stay on these notices.
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