Gaming firms challenge Tamil Nadu’s RMG rules in court
The online gaming industry in India is once again in the legal spotlight as three major skill gaming companies—Games24x7, Junglee Games, and Head Digital Works (A23)—have reportedly moved the Madras High Court against Tamil Nadu’s new real-money gaming (RMG) regulations. These companies are seeking to halt the implementation of these rules, arguing that they are unconstitutional and arbitrary.
Latest regulation of Tamil Nadu government on RMG
The government of Tamil Nadu recently issued strict regulations on online gaming platforms. The rules include stringent restrictions on playing hours, mandatory rigorous KYC checks, and cautions against the addictive tendencies of online gaming. While authorities argue these measures are necessary for consumer protection, gaming companies see them as excessive and detrimental to their business.
Legal grounds for the challenge
The legal battle involves several prominent companies in the gaming industry, including Games24x7, which offers real-money gaming (RMG) platforms like RummyCircle and My11Circle; Junglee Games, known for its popular real-money gaming platform Junglee Rummy; and Head Digital Works (A23), a major player in the Indian skill gaming market, operating the A23 Rummy platform.
The gaming firms argue that the new regulations violate fundamental rights and create an unfair disadvantage for legally operating RMG platforms. They seek a stay on the rules’ implementation and an interim injunction to prevent government action against them.
Key provisions of the new regulations
- Ban on Minors: Individuals under 18 are prohibited from participating in online real-money games.
- Mandatory KYC and Aadhaar-Based Verification: 바카라ers must complete a Know Your Customer (KYC) process, which includes Aadhaar authentication (India’s biometric ID system) and a one-time password (OTP) verification sent to their linked mobile number.
- 바카라time Restrictions: Gaming platforms must display pop-up warnings after one hour of continuous gameplay, with additional warnings appearing every 30 minutes.
- Spending Limits: 바카라ers must be allowed to set daily, weekly, and monthly spending limits. A reminder will inform the player of their total spending each time a deposit is made.
- Mandatory Warning Labels: Gaming platforms must display a prominent cautionary message on login screens stating, “Online Gaming is Addictive in Nature.”
- Restricted Gaming Hours: Access to real-money gaming platforms will be blocked between midnight and 5 AM to prevent excessive gaming habits.
Industry response to the regulations
All-India Gaming Federation (AIGF) CEO Roland Landers has condemned the Tamil Nadu Online Gaming Authority (TNOGA) laws for possibly pushing users into offshore gambling sites. He calls for equilibrium policies that safeguard consumers without undermining the business.
Landers said, “We are focused on addressing the implementation challenges to ensure that the regulations meet their intended objectives without adversely affecting users or the industry. At this juncture, AIGF is not considering any legal challenge against these rules. Instead, we actively work with the authority and our members to facilitate effective enforcement and constructive engagement.”
India has state-specific online gaming regulations that are highly uncertain for businesses. Most industry professionals support a centralised policy to harmonise the rules and ensure consistency. The Madras High Court has ruled in favour of skill gaming firms on several occasions. Most significantly, the court overturned a blanket ban on online rummy and poker in 2023. Nevertheless, the state is still keen to regulate the sector, and this latest bout of litigation is the result.
SiGMA News has approached AIGF and its CEO Roland Landers seeking specific clauses in the new regulatory framework that affect gaming companies. The questions have been unaddressed at the time of publication.
Queries sent to TNOGA seeking their comments on the industry’s opposition have also not immediately yielded any response.
