Tamil Nadu cracks down on RMG amid legal uncertainty

Anchal Verma
Written by Anchal Verma

The Tamil Nadu Online Gaming Authority (TNOGA) has intensified its regulatory clampdown on real money gaming (RMG) companies. Several platforms have received fresh notices for allegedly violating state rules, with TNOGA now formally requesting the Ministry of Electronics and Information Technology (MeitY) to block non-compliant apps.

New notices issued, blocking requests sent

A senior TNOGA official confirmed that issuing notices to RMG firms is an ongoing process. “We notice violations of regulations and we act accordingly,” the official said. These violations include failure to comply with Know Your Customer (KYC) requirements and other user protection norms.

TNOGA Chairperson M D Nasimuddin said that while some leading platforms have started aligning with state regulations, others continue to defy them. “A few of the top firms are complying with the rules now. Some are still not,” he told Storyboard18. TNOGA is now preparing a formal letter to MeitY, requesting a digital blockade of defiant platforms.

Regulations under TNOGA’s framework

The regulatory framework laid out by TNOGA includes stringent user protection measures. These consist of:

  • Aadhaar-based user verification
  • Mandatory display of caution messages for extended gameplay
  • Setting time and spending limits for players
  • A curfew banning online gaming between midnight and 5 AM

These rules are designed to promote responsible gaming and safeguard users, especially minors. However, the curfew clause has been challenged in court for being arbitrary and infringing on individual freedoms.

The legal standing of Tamil Nadu’s online gaming law remains in limbo. The Madras High Court is currently reviewing the constitutional validity of the state’s legislation. In November 2023, the same court had struck down a previous version of the law, declaring it unconstitutional. The court ruled that while the state may regulate games of chance, it cannot ban games of skill like rummy and poker.

Gaming companies have raised concerns over the use of Aadhaar for private verification. They argue that the central government currently restricts Aadhaar-based authentication for private entities under the Aadhaar Act, 2016. Petitioners also claim that online skill-based games fall under the purview of the Centre’s Information Technology Rules, 2021—not state regulations.

State asserts its role, union yet to weigh in

Tamil Nadu’s IT Minister Dr. Palanivel Thiagarajan previously clarified that TNOGA functions under the state’s Home Ministry. He acknowledged that the state is still refining its regulatory structure. “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,” he said. He also confirmed that the government is forming a formal working group to align its laws and enforcement mechanisms.

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