New regulations mandate Aadhaar verification, ban minor players, and implement mandatory breaks in sweeping reform of digital gaming industry
The Tamil Nadu Online Gaming Authority (TNOGA) has unveiled comprehensive new regulations for online real money gaming platforms, introducing some of the most stringent controls in India’s digital gaming sector. The measures, announced on Friday, focus on player protection through mandatory identity verification, time restrictions, and spending limits.
The regulations mark a significant shift in how online gaming platforms will operate in Tamil Nadu, requiring mandatory Know Your Customer (KYC) verification through Aadhaar authentication for all users, even at the account creation stage. This move positions Tamil Nadu at the forefront of regulated online gaming in India, potentially setting a precedent for other states.
“The Tamil Nadu Online Gaming Authority had extensively engaged with stakeholders before drafting the rules, ensuring an inclusive and transparent approach,” explains Roland Landers, CEO of the All India Gaming Federation. “We believe substantial progress has been made toward player protection, fostering innovation, and furthering the growth of India’s online gaming industry.”
The new framework introduces several groundbreaking measures aimed at promoting responsible gaming. Platforms must now implement mandatory break periods for users who play continuously for more than one hour, with pop-up caution messages warning about gaming addiction. Additionally, the regulations enforce a complete shutdown of gaming activities between midnight and 5:00 AM, a measure designed to prevent excessive late-night gaming sessions.
One of the most significant aspects of the new rules is the complete prohibition of minors from participating in real money games. This restriction, coupled with the mandatory KYC verification process, creates a robust barrier against underage gambling. The verification process includes a two-step authentication system, requiring both Aadhaar verification and OTP confirmation via mobile number.
According to industry data from KPMG India, the online gaming sector in Tamil Nadu has seen a 270% growth in the past two years, with an estimated user base of 15 million players. The new regulations will impact approximately 200 registered gaming platforms operating in the state, which collectively generated revenue of ₹8,000 crore in the previous fiscal year.
The regulations also mandate that gaming platforms implement daily, weekly, and monthly monetary limits for each player. These spending caps aim to prevent excessive financial losses and promote responsible gaming behavior. Platforms must prominently display warning messages stating “Online Gaming is Addictive in Nature” throughout their interfaces.
While industry leaders generally welcome the structured approach to regulation, some concerns remain. “The biggest threat to players, the economy, and national security remains offshore illegal gambling apps, which operate outside Indian regulations and put users at risk,” Landers notes. “Addressing this menace requires a collaborative effort between the industry and authorities to develop effective solutions.”
For Tamil Nadu’s gaming startups, the regulations present both challenges and opportunities. While compliance costs may increase, the clear regulatory framework provides a stable foundation for business growth. Local gaming startups now have defined parameters within which to innovate and develop new products, potentially attracting more investment to the sector.
The regulations will take effect upon publication in the official Gazette, giving gaming platforms a transition period to implement the required changes. This regulatory framework could serve as a model for other states looking to balance the growth of their digital gaming sectors with consumer protection measures.
