TNOGA’s 'Blank Hours' regulation will push users to illegal gambling platforms, experts raise concerns

The Tamil Nadu Online Gaming Authority (TNOGA) had released its regulations for the real-money gaming (RMG) industry on Saturday. As RMG companies rush to assess the necessary technological changes, stakeholders express concerns about users from Tamil Nadu shifting to offshore gambling platforms during restricted hours.

TNOGA has previously advocated for measures to curb addiction among young people playing pay-to-play games. According to a copy of the order obtained by Storyboard18, the TNOGA Chairperson states that all minors under the age of 18 will be prohibited from playing online real-money games.

In addition to Aadhaar verification, online game providers must display pop-up caution messages when a player has been active for more than one hour. These warnings should appear every 30 minutes, informing players of their total playtime.

“All online game providers must offer features to set daily, weekly, and monthly monetary limits for each player. Whenever money is deposited, a pop-up message should display the player's set monetary limit and the amount spent so far in reasonably bold letters.”

Caution messages must also be continuously displayed on the login pages of real-money gaming websites and apps, warning users about the addictive nature of these games with the statement: “ONLINE GAMING IS ADDICTIVE IN NATURE.”

Abhay Raj Mishra, President & National Convenor, Public Response Against Helplessness and Action for Redressal (PRAHAR) stated, “We appreciate the TNOGA guidelines that restrict minors from accessing real-money games and prioritize operator-driven, self-imposed monetary limits, aligning with the findings of PRAHAR’s survey of 5,200 online players in Tamil Nadu. According to this survey, youth overwhelmingly oppose government-imposed restrictions on online games.”

Mishra continued, “The restriction on real-money games between 12 AM and 5 AM could backfire by driving players to illegal offshore gambling platforms, which may deliberately become more active during these hours.”

PRAHAR's report, Decoding the Invisible Hand, highlights the risks of exploitation and potential national security threats posed by online gambling platforms that could strategically take advantage of state-imposed restrictions. “We, therefore, urge TNOGA to reconsider this approach in favor of progressive, operator-facilitated restrictions.”

Sahil Kothari, Associate Partner at Economic Laws Practice commented, “The new regulations introduced by Tamil Nadu for the RMG industry, while aimed at curbing addiction and financial risks, present significant operational and compliance challenges. Stringent measures, such as restricted hours, risk stifling industry growth and may trigger legal disputes with the state government. Enforcing state-specific controls will be particularly complex for an industry operating across 28 states in India.”

“A well-balanced regulation, grounded in stakeholder consultation and data-driven insights, is crucial for protecting consumers while fostering a sustainable gaming ecosystem,” Kothari added. “Introducing such regulations risks sparking another round of litigation with the state government.”

Multiple RMG companies contacted by Storyboard18 are now assessing ways to modify their technology for users in Tamil Nadu. However, legal experts warn that consequences for the RMG industry could worsen if multiple states implement similar guidelines. Industry stakeholders are expected to meet TNOGA officials soon for clarifications on the regulations, including implementation timelines.

Roland Landers, CEO of the All India Gaming Federation stated, “The Tamil Nadu Online Gaming Authority (TNOGA) engaged extensively with stakeholders before drafting these rules, ensuring an inclusive and transparent approach. However, 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.”

Addressing this issue requires a collaborative effort between the industry and authorities to develop effective solutions. While some aspects of the new rules may require further deliberation to assess their operational impact, we look forward to continued engagement in creating a balanced and progressive regulatory framework. He added.