India’s online gaming industry has witnessed exponential growth in recent years, driven by increased internet penetration, affordable smartphones, and a rising number of digital payment users. However, this rapid expansion has also brought regulatory challenges, particularly concerning real-money gaming and online gambling.
While skill-based gaming, such as fantasy sports, rummy, and poker, has been legally recognised in some jurisdictions, many states have attempted to impose blanket bans on all forms of real-money gaming due to concerns over gambling addiction, financial losses, and social harm.
Let’s delve into the complexities of India’s online gaming regulations, exploring how different states are navigating the fine line between skill-based gaming and gambling concerns.
The Tamil Nadu government recently issued new regulations under the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022 to tighten oversight on real-money online gaming.
The Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021 initially imposed a blanket ban on all online games, including skill-based ones. However, this was struck down as unconstitutional in the Junglee Games India Private Limited vs. State of Tamil Nadu case.
In response, the state set up a five-member committee, to propose a new regulatory framework. This led to the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, which aims to curb gambling while regulating online games.
On February 7, 2025, the Tamil Nadu Governor approved additional regulations targeting real money online gaming platforms. The Tamil Nadu Online Gaming Authority (TNOGA) will oversee the enforcement of these rules, which include:
Tamil Nadu’s latest regulatory action reflects its intent to curb excessive gaming, prevent financial exploitation, and address addiction concerns. However, with different states enforcing varying gaming laws, businesses operating across India face complex compliance challenges.
India’s online gaming industry is expanding rapidly, yet inconsistent state-wise regulations pose legal and operational hurdles for companies. The lack of uniform national laws creates uncertainty for gaming platforms, discourages investment, and increases compliance costs.
Additionally, the 28% GST on online gaming has already strained industry finances, prompting legal disputes over tax compliance. A centralised regulatory framework could offer much-needed clarity, balancing consumer protection with industry growth.
Tamil Nadu’s new online gaming regulations highlight the growing need for a uniform legal framework to address concerns over gambling addiction, financial risks, and regulatory inconsistencies across states.
While the state aims to protect users through stricter controls, the lack of a centralised policy creates operational challenges for gaming platforms. A nationwide regulatory approach could ensure balanced oversight, fostering both consumer protection and industry growth.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Feb 24, 2025, 12:50 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates