EXCLUSIVE: Video games under regulatory radar in Tamil Nadu; industry warns of fallout
Though TNOGA had released its official regulations on "Real Money Games" in February 2024, it had previously left out the video games industry from its purview.
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The Tamil Nadu Online Gaming Authority (TNOGA) recently convened a key consultation meeting with gaming industry stakeholders to explore whether the broader video gaming sector should be brought under regulatory oversight. The discussions have sparked concerns among gaming companies and industry federations, which have warned that such a move could hamper innovation and derail growth in the sector.
The meeting was chaired by TNOGA Chairperson Md. Nasimuddin, IAS (Retd.), and included representatives from major industry associations such as the Game Developers Association of India (GDAI), the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS).
Though TNOGA had released its official regulations on "Real Money Games" in February 2024, it had previously left out the video games industry from its purview. However, with rising concerns about gaming addiction among minors and the resulting mental health challenges, authorities are reconsidering their stance.
According to sources close to the development, a recent TNOGA survey revealed significant levels of video game addiction among minors, primarily driven by alleged incessant in-app purchases and crimes committed by minors. These findings prompted TNOGA to solicit opinions from the gaming industry on whether regulatory measures should be extended to video games.
Industry leaders, however, voiced strong opposition. “We have suggested to TNOGA that regulating the video gaming industry will stifle the growth and innovation of this sunrise sector,” said one representative. “The industry is still nascent in India and needs encouragement, not barriers. Regulation could discourage investment and derail progress. Tamil Nadu should not look at video gaming and real money gaming industry from the same lens.”
Echoing the sentiment, a video game developer based in Bengaluru noted, “India is being seen as a major market for mobile gaming, especially in the casual segment. If TNOGA imposes regulations, it could create a domino effect, affecting innovation and India’s competitiveness in the global market.”
Psychological experts have highlighted the risks of excessive gaming. The American Psychological Association classifies ‘Internet Gaming Disorder’ as a condition that leads to social withdrawal, reduced educational or career focus, and negative mental health effects like depression and suicidal thoughts when gaming behavior is unchecked over a year.
Tamil Nadu IT Minister Dr. Palanivel Thiagarajan had emphasized that TNOGA reports to the Home Ministry, while the broader industry remains under the purview of the IT Department. He had acknowledged the overlap and assured stakeholders that clarity would soon be provided.
“We’ll clean up the gazette notifications and interpretations to ensure the focus remains on real money games,” Thiagarajan had told Storyboard18. “These are the teething pains of being a pioneer. As the first state to pass a law and set up such an authority, some iteration is expected before we get it right.”
Experts suggest that unnecessary regulation can slow down India's progress in becoming a global hub for game development. Countries like South Korea, Japan, and the U.S. have thrived by promoting innovation through supportive policies.
Another developer said, "Games are a form of digital storytelling and creative expression. Developers use gaming platforms to share Indian folklore, mythology, and regional narratives—making them vehicles for soft power. Like other digital industries, gaming can benefit from self-regulatory frameworks that encourage responsible gaming, age-appropriate content, and parental controls—without heavy-handed intervention."
Dr. MC Sarangan, Member of TNOGA during Storyboard18 Digital Entertainment Summit had said, “The problem isn’t gaming. It’s excessive and compulsive gaming. We promote responsible gaming, and every action we take is based on research,” Sarangan said, outlining TNOGA’s core philosophy.
“Gaming, when used for entertainment or cognitive development, is valuable. But the moment it becomes compulsive, it becomes a problem... we must educate parents and teachers,” he said.
Sarangan issued a call to action: “We can’t fight this alone... This is a collective fight. Everyone: regulators, companies, media, and parents need to join in.”
It should be noted that the video games industry contributes significantly to the economy through job creation, exports, and domestic consumption. India’s gaming sector is projected to cross $3.5 billion by 2027, driven by rising smartphone penetration and affordable data rates.
