The Ministry of Electronics and Information Technology (MeitY) has informed the Madras High Court that the provisions concerning online gaming in the Information Technology Rules of 2021 are not enforceable at the moment. This is primarily because the ministry has yet to designate any self-regulatory bodies (SRBs) as required under the rules. The statement was made in response to the ongoing challenge to the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, which includes provisions requiring Aadhaar-based KYC (Know Your Customer) verification for playing real money games.
The Tamil Nadu government’s regulations also restrict the playing of such games between midnight and 5 a.m. Gaming companies such as Play Games 24X7, Junglee Games, and Head Digital Works, which runs the A23 platform, have filed a challenge against the state’s regulations. Their primary concern lies in the requirement for mandatory Aadhaar-based verification, along with OTP-based authentication for playing real money games. Additionally, they oppose the restrictions on gaming hours.
As per the amended Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules of 2021, online gaming companies are categorized as gaming intermediaries. The amended rules mandate that MeitY designate self-regulatory bodies (SRBs) to verify online games for compliance with regulations. According to Rule 4A, at least three SRBs must be designated to bring these provisions into effect. However, no SRBs have been appointed as of now, leading to the unenforceability of online gaming regulations.
The ministry also clarified that Aadhaar-based authentication could only be made mandatory through an act of parliament, according to the provisions of the Aadhaar Act, 2016. While the use of Aadhaar remains voluntary for online gaming service providers, the ministry stated that these providers could apply for permission to use Aadhaar-based authentication in line with the 2025 amendments to the Aadhaar Authentication of Good Governance Rules, provided it aligns with the interests of the state.
While the central government has emphasized the need for regulation in the online gaming sector, particularly for safeguarding children and preventing addiction, MeitY’s submission highlights the challenges posed by the absence of a self-regulatory framework. In the face of these legal gaps, the Tamil Nadu government’s actions have sparked a broader debate on the enforcement of online gaming rules and their potential impact on the gaming industry in India.
