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The Karnataka government, in collaboration with the All India Gaming Federation (AIGF), has launched 'Beyond Screens', India’s first industry-led digital detox initiative aimed at addressing digital addiction and promoting responsible technology use.

Launched by Karnataka’s IT & BT Minister Priyank Kharge at GAFX 2025, the initiative seeks to raise awareness about excessive digital consumption and integrate digital wellness into mainstream healthcare. The programme, developed with Kahamind Healthcare Private Limited, will provide structured interventions, including education, support, and research-driven strategies to help individuals develop healthier digital habits.

Minister Kharge emphasised the need to balance online and offline life, urging users to prioritise "sunlight before screen light." He stated that the initiative would offer practical tools to manage digital dependency and foster a more responsible approach to technology use.

AIGF CEO Roland Landers highlighted the gaming industry's role in encouraging responsible digital engagement, stating that this initiative sets an important benchmark for the sector. The Beyond Screens programme will serve as a resource hub for those struggling with excessive screen time, offering both short-term support and long-term digital detox strategies.

The initiative marks a significant step in recognising digital addiction as a public health concern, with plans to expand its reach through collaborations with healthcare providers and community awareness programmes.

Read More: <a href="https://cms.storyboard18.com/gaming-news/breaking-sc-28-gst-gaming-case-govt-seeks-adjournment-59379.html">Breaking: SC 28% GST gaming case, Govt seeks adjournment</a>

Karnataka unveils India’s first industry-led digital detox initiative

The E-Gaming Federation met with officials from the Tamil Nadu Online Gaming Authority on Tuesday to seek clarity on the newly enforced Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025. According to sources, the regulator listened to the concerns of stakeholders but emphasized that the regulations must be implemented or legal consequences would follow.

The meeting, held on Tuesday, was attended by TNOGA full-time members Md. Nasimuddin and Dr. M.C. Sarangan, along with Anuraag Saxena, Chief Executive Officer (CEO) of the E-Gaming Federation, and three top real money gaming (RMG) operators.

A TNOGA source confirmed the development, stating, "The regulations must be implemented by the RMG companies." TNOGA plans to engage with other stakeholders in the coming days.

Anuraag Saxena, CEO of the E-Gaming Federation, declined to comment on the meeting.

A senior RMG operator familiar with the situation said, "TNOGA has made it clear that the regulations must be implemented, or legal action will follow. During the meeting, TNOGA officials were very clear about their intent to enforce the regulations."

Notably, RMG operators have yet to implement the regulations in Tamil Nadu, leaving them exposed to potential criminal liability. "We need at least three to six months to implement the regulations. Making changes to technology specific to Tamil Nadu users is not easy. Pop-up messages on screens, modifications in KYC processes, and other compliance updates require thorough testing before they can be deployed on platforms," an industry source explained.

Multiple RMG federations and operators are currently evaluating how to comply with the TNOGA regulations. A legal expert, speaking on condition of anonymity, stated, "RMG operators must comply with the regulations once they are published in the gazette. Failure to do so could lead to criminal liability for the companies."

Non-compliance with the regulations will result in legal action against the RMG operator under Section 16(3) of the Tamil Nadu Prohibition of Online Gambling & Regulation of Online Games Act, 2022.

Storyboard18 previously reported that the RMG industry was preparing to take legal action against the Tamil Nadu government over its arbitrary “blank hour” regulations, which would prohibit gaming between midnight and 5 AM. 

The RMG industry is divided over the regulations with many operators skeptical about taking legal action against the Tamil Nadu government. While some RMG operators believe a formal lawsuit should be filed immediately, others are hesitant.

Dr. Palanivel Thiagarajan, Tamil Nadu’s IT Minister, previously told Storyboard18 that TNOGA reports to the Home Ministry, while the RMG industry falls under the IT sector. He also noted that the state had held discussions and was in the process of forming a formal working group.

"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. These are the growing pains of being a pioneer. When you're the first to pass a law and establish an authority, it sometimes takes a few iterations to get it right," he said.

It’s worth noting that in November 2023, the Madras High Court struck down the law banning online money games such as Rummy and Poker, declaring it "unconstitutional."

A bench comprising Chief Justice SV Gangapurwala and Justice PD Audikesavalu ruled that while the state government has the authority to regulate online gaming by imposing time limits or age restrictions on both games of skill and chance, it cannot ban games of skill, such as Rummy and Poker. The court clarified that the Act could only be used to prohibit games of chance, not games based on skill.

Tamil Nadu gaming authority to stakeholders: Implement regulations or face criminal charges

The Ministry of Home Affairs is actively monitoring illegal Chinese gambling companies that are disguised as legitimate Real Money Gaming (RMG) companies in India. The Ministry of Electronics and Information Technology (MeitY) has been rigorously banning these Chinese apps and websites, but they continue to resurface under new identities.

These Chinese apps and websites have become hubs for money laundering in the country, posing a potential threat to national security and contributing to gambling addiction among citizens. In September 2024, an investigation by the Enforcement Directorate (ED) uncovered a ₹400-crore fraud involving Chinese nationals.

Four Indians associated with the online gaming app Fiewin, who supported the Chinese nationals in the fraud, were arrested by ED officials in Kolkata. The suspects allegedly laundered money through cryptocurrency by defrauding Indian users of ₹400 crore. 

A senior policy leader at a leading RMG firm commented, “Goa is becoming a hotspot for registering Chinese companies involved in betting and gambling. These companies often masquerade as RMG firms registered in India to launder money, causing significant losses to the public exchequer. This is also because of China recently adopting stricter policy around gambling that such companies and individuals are expanding their operations aggressively in India.”

The source added, “The bigger issue is defrauding Indian users and taking their hard-earned money under false claims of legitimacy. This undermines trust in genuine RMG platforms and pushes players toward illegal gambling apps and websites.”

It’s worth noting that the offshore sports betting market receives an estimated $100 billion annually in deposits from India and has been growing at 20% per year over the last three years, according to a Think Change Forum (TCF) report.

Despite the best enforcement efforts, the illegal offshore betting industry is expected to continue growing at a rate of at least 20% annually under the new GST regime, potentially leading to tax losses of ₹6,72,205 crore by 2026, according to the report.

Additionally, the Ministry of Consumer Affairs raised concerns with the Registrar of Companies (ROC), urging scrutiny of multiple companies with Chinese directors or investments operating from the same address. This led the ROC to establish a dedicated cell to investigate shell companies with Chinese nationals as directors and investors.

Storyboard18 reached out to the E-Gaming Federation and All India Gaming Federation for their perspectives on Chinese companies masquerading as RMG firms in India. However, neither organization responded.

From 2022 to 2024, the IT Ministry issued 692 blocking orders targeting online betting, gambling, and gaming websites and apps. In November 2023, the Ministry issued blocking orders against 22 illegal betting apps and websites, including Mahadev Book Online, which is under investigation for money laundering in Chhattisgarh. In February, the Ministry blocked 138 betting apps and websites, including platforms like Mahadev, Parimatch, Fairplay, 1XBET, Lotus365, Dafabet, and Betwaysatt.

Storyboard18 also reported that RMG operators submitted a list of over 540 illegal websites and apps to Directorate General of GST Intelligence (DGGI) following the implementation of the 28% tax regime on October 1, 2023. 

“The problem is that these Chinese or offshore betting and gambling companies quickly reappear with new domain names and resume operations,” said an RMG operator. “There is a need for whitelisting apps, and the government should create more awareness about this. We have proposed this solution, but no progress has been made so far.”

The first tranche of Chinese-origin apps was blocked in June 2020 when MeitY banned 59 apps through a single order.

In December 2023, the Finance Ministry informed the Lok Sabha that, as of October 31, 2023, MeitY had blocked a total of 581 apps under Section 69A, of which 174 were related to betting and gambling, and 87 were loan-lending apps. Other banned apps included PUBG and Garena Free Fire. However, the ministry did not specify when these 581 apps were blocked.

Govt intensifies surveillance on Chinese companies masquerading as RMG operators

The Real Money Gaming (RMG) industry is expressing disappointment over the Ministry of Information and Broadcasting (MIB) showing indifference to its participation in the upcoming World Audio Visual & Entertainment Summit (WAVES), scheduled for February in Delhi. Furthermore, RMG representatives have not been granted a meeting with the MIB in over two months.

The WAVES 2025 will be held from February 5–9 in New Delhi, focusing on four key pillars: Broadcasting & Infotainment, Digital Media & Innovation, AVGC-XR, and Films.

The E-Gaming Federation (EGF) recently introduced CityQuest: Shades of Bharat in collaboration with the MIB as part of the "Create in India Challenge" for WAVES 2025. Originally intended to launch during the WAVES, the game is co-powered by Games24x7, one of the country’s leading RMG players. However, EGF launched the game without the presence of Sanjay Jaju, Secretary, Ministry of Information and Broadcasting. Sources claim that MIB has refused to be seen beside RMG players at the summit. 

An RMG representative told Storyboard18, “The bureaucrats seem open to including RMG as part of WAVES, but the I&B Minister, Ashwini Vaishnaw, remains hesitant. We have been waiting patiently for a platform to showcase our contributions to the industry.”

It’s noteworthy that the Game Developers Association of India (GDAI) has partnered with the MIB to highlight various video game launches at the event, while the Esports Federation of India (ESFI) is working with the ministry to organize an esports championship. However, the RMG sector has no representation at WAVES.

India’s gaming market grew 23% year-over-year (YoY) by revenue, reaching $3.8 billion in the 2023-24 fiscal year, despite a 28% blanket goods and services tax (GST) imposed on online gaming, according to a report by gaming-focused venture capital firm Lumikai. The report highlighted that RMG remains the primary revenue driver for the industry, contributing $2.4 billion of the total. In-app purchases were the fastest-growing segment, increasing by 41% YoY. RMG firms managed to add $400 million to their topline in FY24 despite absorbing the GST burden, thanks to a packed live sports calendar that included two world cups and the IPL.

Another RMG representative, speaking anonymously, shared, “It’s disheartening that despite being a significant contributor to the gaming industry’s growth, the government continues to ignore us. We pay substantial taxes yet have no platform to showcase our progress.”

“The government needs to resolve its internal disagreements within the MIB to support the growth of the RMG sector,” the representative added.

The RMG industry faces ongoing legal challenges in Indian courts, with no clear outcomes. A source close to the matter revealed to Storyboard18 that the MIB is reluctant to promote RMG as an industry due to these pending legal cases.

Storyboard18 was the first to report the Indian government’s decision to separate RMG from the broader video gaming sector. Under this policy, RMG platforms will be overseen by the Ministry of Electronics and Information Technology (MeitY), while video games for entertainment and content will remain under the MIB’s jurisdiction.

The source further explained, “The MIB has refused to engage with the RMG sector. For over two months, neither industry federations nor individual players have managed to secure meetings with MIB officials. This clearly demonstrates their intention to treat RMG as distinct from the video gaming industry.”

Earlier, on September 6, the Department for Promotion of Industry and Internal Trade (DPIIT) had sent a letter to MIB, MeitY, and NITI Aayog seeking clarity on distinguishing between games of skill and games of chance. This distinction is crucial for drafting a policy formalizing 100% Foreign Direct Investment (FDI) in online gaming.

The proposed policy would permit full FDI in online real-money gaming, provided the investments exclude betting or gambling activities. NITI Aayog, India's premier policy think tank, is working to establish these definitions to ensure a robust long-term framework for the gaming ecosystem.

The ongoing discord between the RMG sector and the MIB highlights a significant divide in how the gaming industry is perceived and supported in India. An expert said that collaboration, rather than exclusion, should be key to drive unified vision for the online gaming industry’s future.

RMG players sidelined by MIB for WAVES, seek equal treatment

On Wednesday, the Chief Secretary of the Tamil Nadu government took a firm stance against online gaming. The Tamil Nadu Online Gaming Authority (TNOGA) launched an awareness campaign aimed at addressing the addiction issue of online gaming in the state. This campaign comes as Tamil Nadu is in the process of developing a policy for regulating online gaming.

During the event, N. Muruganandam, Chief Secretary of Tamil Nadu stated that teachers and parents should be informed about the addictive nature of online gaming. He also referenced the government’s decision to implement the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022.

Muruganandam also suggested the parents and teachers to monitor activities of their kids to keep them away from online gaming addiction. 

Hinting at the possibility of once again banning certain games in the state, Muruganandam remarked that during the COVID-19 pandemic, many young children became addicted, prompting the government to introduce legislation authorizing the regulation of online games in the state.

An RMG (Real Money Gaming) operator, speaking on condition of anonymity, said, “This statement from the government comes at a time when the state is drafting a policy around online gaming. We ensure that our games are safe to play. Additionally, we comply with all central government regulations.”

Another RMG operator added, “The government has yet to hold a second consultative meeting with stakeholders to finalize the draft of the policy. Such a harsh stance could complicate the process of creating a comprehensive policy on gaming.”

On July 24, 2024, the first consultative meeting took place between Tamil Nadu officials and representatives from the All India Gaming Federation, Federation of Indian Fantasy Esports, E-Gaming Federation, and the Game Developers Association of Tamil Nadu.

It’s worth noting that in November 2023, the Madras High Court struck down the law banning online money games such as rummy and poker, declaring the law "unconstitutional."

A bench comprising Chief Justice SV Gangapurwala and Justice PD Audikesavalu stated that while the state government has the authority to create rules to limit the time spent on online games or to set age restrictions for both games of chance and skill, it can only ban games of chance, not games of skill.

The court further clarified that the Act could not be used to ban skill-based games like rummy and poker.

"Certainly, online gambling can be prohibited by the state. The state has ample authority to enact legislation prohibiting online gambling, and it also has the power to regulate online skill-based games within Tamil Nadu. Instead of regulating these skill-based games, such as rummy and poker, the state simply banned them, which exceeded its legislative competence," the High Court stated.

Tamil Nadu government is yet to decide a date on the second consultative process with the stakeholders. 

Breaking: Tamil Nadu takes strong stand against online gaming, RMG players left red faced

Micropayments or micro-transactions are emerging as a new source of revenue for digital publishers. Be it an OTT player or a gaming platform, users are open to making transitions starting at as low as Rs10 for niche content on these platforms.

Sameer Barde, CEO of E-Gaming Federation, says in the next three to five years the gaming industry is anticipating at least a doubling of non-real money gaming revenue. This growth will be led by micro payments where there'll be a lot more people spending on the pay-to-play model.

Explaining the transition Barde says, “A housewife who has gotten used to playing a casual game is now open to making a small payment on the app to unlock boosters because the ticket size of the transactions costs her less than a cup of tea. We are noticing this trend where a lot of casual gamers who are right now playing absolutely free or playing on ads are slowly migrating into one-off transactions.”

Although micropayments are not new in the digital ecosystem, it is only in the last year or so that digital players have started taking it seriously. After the traffic surge on digital platforms happened in the last two years the next focus for publishers was monetization.

While subscription and ad revenues dominated as the major monetization options, micropayment models were born out of the user’s loss of interest in ads and of course subscription fatigue where they didn’t want to commit to a long-term membership for select content.

Micropayments allow users to make small transactions for the specific services they need at a particular time. Experts suggest that micropayment helps in user retention and ultimately leads to more subscription and ad revenues.

Turns out, micro-transactions also led to the overall growth of brands.

“Since the start of the Covid-19 outbreak in 2019, two emerging sectors recorded unprecedented growth and adoption, the online interactive entertainment space and the digital payments sector,” said an official spokesperson from social gaming and interactive entertainment platform WinZo.

WinZO recorded a 10x growth in 2020-21 to facilitate 2.5 billion micro-transactions per month on the platform.

Elaborating on the user profile the spokesperson said, “These were the people who were first-time smartphone users who gained access to the internet for the first time and craved for a medium to connect with others due to the series of lockdowns and finally started trusting digital payments.”

Ninety percent of the 80 million registered users on WinZo hail from Tier 2 to Tier 5 pockets of the Bharat market and nearly 80 percent of them consume content in 12+ vernacular languages, outside of English.

On average, every user of WinZO spends nearly Rs 300 a month on the platform.

The ticket size of micropayments however starts from as low as Rs9-10. For instance, audio streaming service Pocket FM allows the purchase of in-app coins Rs9 onwards. These coins are then used for consuming one or more episodes of their fiction audio series and also, buying audiobooks from their library.

Rohan Nayak, co-founder and CEO, Pocket FM, says they have finally managed to break the long-standing myth around the Indians unwilling to spend on digital content.

“Since our inception, we have been focused on sustainable and profitable growth and have been experimenting with multiple revenue streams. During one of such experiments, we launched a micropayment model for our listeners this February, which has turned out to be immensely successful,” Nayak said.

Their monthly revenue grew over 350 percent quarter-on-quarter (QoQ), and they are now bullish about this content monetization approach and may soon completely move away from the subscription model as over 80% of their revenue comes from content monetization, led by micropayment.

Players across sectors that are otherwise free are now deriving a significant chunk of their revenues from small purchases and this revenue model is here to stay given the low attention cycle of users that prevent them from longer wait times for free content and also long term commitment of subscriptions.

E GAMING FEDERATION