Tamil Nadu issues fresh notices; Real money gaming companies face MeitY blockade
TNOGA chairperson M D Nasimuddin had confirmed that while some leading platforms have begun aligning with state regulations, others continue to operate in defiance.
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The Tamil Nadu Online Gaming Authority (TNOGA) has escalated its regulatory efforts against Real Money Gaming (RMG) companies, issuing a fresh round of notices to platforms allegedly operating in violation of state laws. With several firms under scrutiny, TNOGA has approached the Ministry of Electronics and Information Technology (MeitY) to block non-compliant apps.
A senior TNOGA official told Storyboard18, “Sending notices to RMG companies is an ongoing process. We notice violations of regulations and we act accordingly.” Pointing out that the companies continue to flout norms including KYC norms.
TNOGA chairperson M D Nasimuddin had confirmed that while some leading platforms have begun aligning with state regulations, others continue to operate in defiance. “A few of the top firms are complying with the rules now. Some are still not,” he said, adding that the authority will formally write to MeitY seeking a digital blockade of the defiant platforms.
The renewed crackdown comes even as the legal fate of Tamil Nadu’s online gaming regulations remains undecided. The Madras High Court is currently deliberating on the constitutional validity of the state's legislation, with a verdict yet to be delivered.
The regulatory framework enforced by TNOGA includes stringent user verification and player protection measures. These mandate Aadhaar-based user authentication, the display of repeated cautionary messages for prolonged gameplay, and the setting of mandatory time and monetary limits for players. One notable clause imposes a curfew, banning online gaming between midnight and 5 AM— a provision that has been challenged in court for being arbitrary and infringing on personal freedoms.
Gaming companies have also raised concerns over the feasibility of Aadhaar-based verification, arguing that the central government currently prohibits its use for private authentication due to privacy restrictions under the Aadhaar Act, 2016.
Petitioners further contend that the Tamil Nadu government lacks jurisdiction over online skill-based games, asserting that such games fall under the purview of the Centre’s Information Technology Rules, 2021.
The ongoing regulatory debate highlights a clash of authority between state and central laws. Dr. Palanivel Thiagarajan, Tamil Nadu’s IT Minister, previously told Storyboard18 that TNOGA reports to the Home Ministry, while the RMG industry falls under the IT sector. He also noted that the state had held discussions and was in the process of forming a formal working group.
"We'll clean up the gazette notifications and interpretations to ensure the focus remains strictly on real-money games and does not impact other areas. These are the growing pains of being a pioneer. When you're the first to pass a law and establish an authority, it sometimes takes a few iterations to get it right," he said.
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.
