No further consultations: TN online gaming authority set to enforce strict rules for RMG industry

In what could be a potential setback for Real Money Gaming (RMG) players, the Tamil Nadu Online Gaming Authority (TNOGA) is preparing to regulate the RMG industry in the state. However, the video gaming industry will remain unregulated in Tamil Nadu. Additionally, TNOGA has decided not to conduct further consultations with stakeholders before implementing the policy.

On July 24, 2024, the first consultative meeting took place between Tamil Nadu officials and representatives from the All India Gaming Federation, the Federation of Indian Fantasy Esports, the E-Gaming Federation, and the Game Developers Association of Tamil Nadu.

Storyboard18 was the first to report that N. Muruganandam, Chief Secretary of the Tamil Nadu government, had hinted at regulating certain games, citing concerns over the growing addiction to online gaming among children and its harmful effects.

Sources close to the matter confirmed this development to Storyboard18, stating, "The Tamil Nadu government clearly has no plans to regulate the video gaming industry, which is still in its early stages. However, the government has observed the adverse effects of RMG in the state, with individuals losing significant amounts of money."

The source added, "Some people have even taken drastic steps after losing money while playing pay-to-play games. Gambling apps, which are already banned in the state, remain another concern. TNOGA will regulate RMG platforms, but video games will stay unregulated."

The Tamil Nadu Online Gaming Authority (TNOGA) has also taken a strong stance against gambling firms, initiating legal action against more than 12 YouTubers, Instagram influencers, and a private firm for promoting online betting and gambling. If convicted under the Tamil Nadu Online Gaming Act, they could face fines ranging from ₹500,000 to ₹1,000,000 and up to three years of imprisonment.

Additionally, Tamil Nadu is set to introduce new regulations for online gaming, which may include daily time and spending limits. The TNOGA, established last year, has recommended that online gaming be prohibited between midnight and 5 a.m., with a daily play limit of four hours and each session restricted to two hours.

Under the proposed rules, players may also face spending caps of ₹5,000 per day and ₹20,000 per month on gaming platforms. Aadhaar verification is expected to be mandatory for all registrations on these platforms.

Another source close to the development stated, "There will be no further consultation on the new policy regulating pay-to-play games in the state. The policy will be more balanced and nuanced, specifically targeting RMG players."

Dr. Palanivel Thiagarajan, IT Minister of Tamil Nadu had told Storyboard18 that TNOGA reports to Home Ministry while industry remains in the IT Sector. Thiagarajan had also highlighted that the state had some meetings and is going to constitute a formal working group.

“We'll clean up the gazette notifications and the interpretations so that it's very clearly focused on real money games and does not affect the rest. But these are the teething pains of being the pioneer. If you are the first one to pass a law and set up an authority, sometimes you have to kind of take a couple of iterations before you get it right,” he concluded.

It’s worth noting that in November 2023, the Madras High Court struck down the law banning online money games such as rummy and poker, declaring the law "unconstitutional." A bench comprising Chief Justice SV Gangapurwala and Justice PD Audikesavalu stated that while the state government has the authority to create rules to limit the time spent on online games or to set age restrictions for both games of chance and skill, it can only ban games of chance, not games of skill. The court further clarified that the Act could not be used to ban skill-based games like rummy and poker.