Centre Plans Single Regulatory Framework for Online Gaming

The Indian government is working on a unified regulatory framework for online gaming to replace fragmented state-level laws, making business operations easier for companies. A panel formed by the Home Ministry, comprising officials, legal experts, and industry executives, is exploring the way forward. Early discussions include whether a new law is needed to distinguish gaming from gambling, despite the Supreme Court already defining the difference. The move signals the government’s recognition of the gaming sector’s growth potential. This is a developing story.

Government Proposes New Law to Regulate Online Gaming and Betting

The Indian government is considering a central law to regulate online gaming, betting, and gambling due to concerns over fraud, cybersecurity, and misleading ads. The Ministry of Home Affairs has tasked the Indian Cyber Crime Coordination Centre (I4C) with assessing the need for new legislation. Authorities are also scrutinizing offshore gambling platforms and celebrity endorsements of illegal betting sites. The proposed law aims to enhance consumer protection and data security. While no timeline has been announced, regulatory changes are expected soon.

ASCI and Gaming Federations Join Forces to Regulate Offshore Betting Ads

To tackle the growing issue of offshore betting advertisements, the Advertising Standards Council of India (ASCI) has signed an MoU with major gaming federations, including the Federation of Indian Fantasy Sports (FIFS), the All India Gaming Federation (AIGF), and the E-Gaming Federation (EGF). Effective from January 2, 2025, this partnership will establish a dedicated monitoring cell to track and report illegal offshore betting ads. Additionally, the initiative will oversee real-money gaming (RMG) advertisements to ensure they align with ASCI’s guidelines and promote responsible advertising within the gaming industry.

Tamil Nadu Introduces Stringent Online Real Money Gaming (RMG) Regulations

The Tamil Nadu government has officially enacted the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025, introducing strict compliance requirements for RMG platforms. The regulations ban minors from participating in RMG, mandate Aadhaar-based KYC verification, and introduce spending limits. Platforms must display pop-up messages at 30-minute intervals to caution players about extended gameplay and notify them of their spending habits. Additionally, a “blank hours” rule prohibits access to RMG platforms between midnight and 5 AM. While these measures aim to promote responsible gaming, industry stakeholders have raised concerns over the challenges of implementing such restrictions, especially as gaming laws vary across different states.

Finance Ministry to Discuss GST and Money Laundering in Online Gaming

The Finance Ministry has scheduled a meeting with RMG operators to address concerns related to money laundering, tax policies, and offshore gambling platforms operating in India. The introduction of a 28% GST on online gaming has drastically impacted the industry, reducing projected job creation from 250,000 to just 30,000 and slowing Foreign Direct Investment (FDI). Officials from the Financial Action Task Force (FATF) will attend the meeting to outline global standards for preventing financial crimes in gaming. The discussion will also focus on strategies to curb the rise of illegal offshore platforms, which pose significant risks to consumer protection and financial security.

Tamil Nadu Enforces Strict Real Money Gaming Regulations

Tamil Nadu has introduced new regulations for real money gaming (RMG), banning minors, enforcing Aadhaar-based KYC verification, and imposing spending limits. Platforms must display addiction warnings and restrict access between midnight and 5 AM. The Tamil Nadu Online Gaming Authority will oversee compliance and licensing. While the rules aim to curb gaming addiction and financial risks, industry experts argue that state-specific regulations may create enforcement challenges, calling for a unified national framework.

Karnataka High Court Rules Poker as a Game of Skill

The Karnataka High Court has reaffirmed that poker is a skill-based game, leading to the quashing of an FIR against Bengaluru-based D.M. Gaming Pvt. Ltd. The case originated from a complaint alleging illegal gambling at the gaming club, resulting in police action under the Karnataka Police Act. However, the court ruled that poker does not fall under gambling laws, reinforcing legal protection for skill-based games in India. The verdict is expected to benefit gaming operators facing similar legal challenges and could help prevent undue police action against legitimate gaming establishments.