The Tamil Nadu government is reportedly considering legislation to implement time and spending limits on users of online gaming and real money gaming platforms. This initiative aims to curb addiction to online gaming and gambling within the state.
The Tamil Nadu Online Gaming Authority (TNOGA), a regulatory body established to oversee online gaming in the state, has consulted with senior representatives from the gaming industry to discuss the regulation of user activity rather than the platforms themselves, according to an ET report. This approach aligns with the TN government’s broader strategy to combat gaming and gambling addiction.
Addressing Addiction Concerns
Minutes from a May 27 TNOGA meeting with industry stakeholders reveal plans to guide both minor and adult users on appropriate gaming durations, even for games without monetary stakes. This initiative underscores the government’s commitment to mitigating the adverse effects of excessive gaming.
The timing of this meeting coincides with reports suggesting that the central government is also considering similar measures to address addiction and spending in online real money gaming. While acknowledging the ongoing issue of illegal and offshore betting platforms, TNOGA prioritizes the regulation of domestic companies, aiming to set a regulatory precedent.
Legislative Efforts and Industry Response
Tamil Nadu has been proactive in regulating online gaming and gambling. In March 2023, the state passed legislation banning online gambling, including real money games like rummy and poker. This move prompted concerns from industry stakeholders who argue that games such as rummy, poker, and fantasy sports fall under the ‘games of skill’ category and should not be classified as gambling.
The new regulations faced legal challenges from gaming companies, leading to a ruling by the Madras High Court that the law could not ban games of skill like rummy and poker, restricting its application to games of chance. Despite this setback, the state government escalated the issue to the Supreme Court, which is yet to hear the combined appeals.
National Regulatory Trends
The central government is also considering measures to curb gaming addiction, as indicated by reports in May 2024. Last year, the government amended the Information Technology Rules, 2021, to include regulations for the gaming industry, mandating the formation of a self-regulatory organization (SRO) by industry bodies. However, no proposed SROs have been accepted to date.
The effectiveness of these regulatory approaches may evolve with the transition of officials within key government portfolios and cabinet ministries under the new government. As the central and state governments continue to address the challenges posed by online gaming, the impact of these regulations on the industry and its users will be closely watched.
