The online gaming industry in India is one of the fastest-growing in the Media and Entertainment (M&E) sector. The 2024 FICCI-EY (Federation of Indian Chambers of Commerce and Industry- Ernst & Young) report showed an 8% growth in the M&E sector, reaching Rs 2.3 lakh crore, 21% above pre-pandemic levels.
Digital media, including online gaming, led this growth, contributing Rs 12,200 crore and increasing its share from 20% to 38%. India’s online gamers grew to 455mn in 2023, and the industry is projected to reach Rs 38,800 crore by 2026.
The Tamil Nadu government recently issued new regulations under the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022 (Tamil Nadu Gaming Act) to tighten oversight on real-money online gaming.
The regulations, dubbed Tamil Nadu Online Gaming Authority (Real Money Games) Regulations 2025, defined an ‘Online real money game’ as “an online game where a user deposits cash or kind with the expectation of earning winnings on that deposit.”
‘Winnings’ have been defined as “any prize, in cash or kind, which is distributed or intended to be distributed to a user of an online game based on the performance of the user and by the rules of such online game."
Tamil Nadu New Gaming Regulations
The Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025, introduce several key provisions to regulate online real-money gaming within the state.
Age Restriction: The Tamil Nadu Online Gaming Authority has imposed a strict age restriction prohibiting individuals under 18 years from participating in any online real-money games. To enforce this, gaming platforms must implement a strong age verification mechanism during account registration. It includes Aadhaar-based authentication or any other government-approved ID to verify the user’s age.
In cases where a minor is found to have accessed these platforms using fraudulent details, their account must be immediately suspended and the platform is liable to face legal consequences. Companies that fail to enforce these age restrictions can be penalised, have their licenses revoked, or even face legal charges for non-compliance.
Mandatory KYC Verification: The regulations mandate a compulsory Know Your Customer (KYC) verification process during account creation, to ensure that only legitimate users participate in online real-money games. Players are required to submit their Aadhaar details for authentication, and an OTP verification will be sent to their registered mobile number.
Additionally, financial transactions will require PAN card verification or any other valid identity proof. Gaming platforms are responsible for securely storing this sensitive data and must comply with existing data protection laws to avoid data misuse.
Restricted Gaming Hours: To curb excessive gaming and potential addiction, these platforms must block access between 12:00 AM and 5:00 AM. This measure aims to discourage players from engaging in late-night gaming sessions, which have been linked to increased financial losses and deteriorating mental health.
Gaming platforms are required to implement automated access control systems that prevent logins during restricted hours. Any attempt to bypass these restrictions through VPNs or other means could lead to account suspension.
Playtime Warnings: Online gaming platforms must implement a system of periodic playtime warnings. Players who engage in continuous gameplay for over an hour will receive an on-screen pop-up notification warning them about their extended session. These warnings will continue to appear every 30 minutes, reminding players of their total playtime.
The alerts must be designed to be visible and interactive, making players acknowledge them before continuing. If a player repeatedly ignores these warnings, the platform may impose temporary restrictions, such as forced breaks or spending caps, to prevent unhealthy gaming behavior.
Spending Limits: Players must be given the option to set their daily, weekly, and monthly deposit and spending limits. Every time a player adds funds to their account, they will receive a reminder stating how much they have already spent in that period. If a player reaches their pre-set spending limit, the platform must block further transactions unless the user manually increases the limit after a designated cooling-off period.
Gaming companies are also required to monitor user spending behavior and flag excessive spending as a potential indicator of addiction. If a player is found engaging in financially reckless behavior, platforms may be required to intervene and take appropriate measures.
Cautionary Messages: The online gaming platforms must display a warning note on the login screen stating, "Online Gaming is Addictive in Nature. Please Play Responsibly." This cautionary message must also be included in all advertisements, promotional materials, and marketing campaigns related to online gaming.
Players should also receive periodic notifications while playing, reminding them about the risks associated with excessive gaming.
Tamil Nadu Gaming and Police Laws
Initially, the Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021, banned all internet games, including skill-based ones. However, in the case of Junglee Games India Private Limited vs State of Tamil Nadu, this was deemed unconstitutional.
In response, the state established a five-member committee to recommend a revised regulatory framework. As a result, the Tamil Nadu Prohibition of Internet Gambling and Regulation of Online Games Act, 2022, was enacted to regulate online gaming and control gambling.
