A23, Games24x7, and Junglee Games sue Tamil Nadu Over New Regulations Pertaining to Real-Money Gaming

Nitin Konde, Varun Bhardwaj

25 Feb 2025 — 3 min read

A23, Games24x7, Junglee Games Sue Tamil Nadu Over Gaming Rules

In a case filed in the Madras High Court, skilled gaming businesses Games24x7, Junglee Games, and Head Digital Works (A23) have contested the legitimacy of the Tamil Nadu state's latest regulations pertaining to the real-money gambling (RMG) sector, which went into effect on February 15.

In order to prevent state authorities from taking any coercive action against them, these corporations have filed writ petitions to halt the execution of these restrictions and secure an interim injunction. Additionally, the corporations have asked the court to rule that the law is "arbitrary, void, illegal, and unconstitutional" when it comes to online skill games that are played for cash or other stakes.

The latest setback for an industry already struggling with rising goods and services tax (GST) rates came earlier this month when Tamil Nadu announced a set of state-specific restrictions that imposed time and usage limits on RMG platforms.

The Tamil Nadu Online Gaming Authority (TNOGA) released the rules as part of the state's larger initiatives to control the rapidly expanding industry. The authority's action was expected to spark another legal dispute between the state and RMG platforms, according to many media reports earlier.

What New Rules State?

RMG platforms are required to implement "blank hours" between midnight and 5 a.m., which result in the inability to log in during this time frame. In addition, the standards require organisations to allow users to set daily, weekly, and monthly financial limitations and forbid minors from playing real-money games. Platforms could also remind players of their playtime by displaying pop-up warning messages every 30 minutes after they have been playing for more than an hour.

The phrase "ONLINE GAMING IS ADDICTIVE IN NATURE" should be shown on the login pages of RMG apps, along with other warnings concerning the addictive nature of these games. According to the recommendations, RMG apps should also show the fixed monetary limit and the total amount spent thus far in "reasonably bold letters" whenever players deposit money.

Other Measures Companies Need to Maintain

Mandatory Know Your Customer (KYC) verification at account creation is one of the additional steps. A second-layer verification using a One Time Password (OTP) issued to the phone number associated with the Aadhaar number will validate the initial login authentication, which will require KYC verification through Aadhaar.

TNOGA has adopted a "consultative and inclusive approach in draughting regulations aimed at ensuring user protection," according to Roland Landers, CEO of the All India Gaming Federation (AIGF), a trade association for the skill gaming sector.

He added that certain elements, like the blackout time, can have unforeseen repercussions and might encourage consumers to utilise offshore gambling sites, which present serious concerns to consumer safety and have an effect on both national and economic security.

To make sure the regulations achieve their goals without negatively impacting users or the sector, we are currently concentrating on resolving the implementation issues. AIGF is not currently considering a legal challenge to these regulations. Rather, we are actively collaborating with our members and the authority to support constructive engagement and efficient enforcement," Landers stated.