India’s online gaming laws in limbo amid court battle

According to a report by Hindustan Times, the Ministry of Electronics and Information Technology (MeitY) has informed the Madras High Court that the provisions related to online gaming under India's Information Technology (IT) Rules, 2021 are currently unenforceable because no self-regulatory bodies (SRBs) have been designated under the rules.

The government’s submission came during the ongoing legal challenge to the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, which has been contested by several gaming companies, including Play Games 24X7, Junglee Games, and Head Digital Works (operator of A23). The companies oppose the act’s provisions, particularly the mandatory Aadhaar-based KYC verification and restrictions on real money games between midnight and 5 AM.

In April 2023, the IT Rules, 2021 were amended to regulate online gaming intermediaries, requiring MeitY to notify at least three SRBs under Rule 4A to verify real money games, but no SRBs have been appointed yet. Without these designations, the provisions for online gaming under IT Rules, 2021 remain unenforceable, MeitY stated in its written submission, as reported by Hindustan Times.

The government also clarified that Aadhaar cannot be mandated for identity verification in online gaming and can only be used voluntarily for subsidies, benefits, or services under India's Aadhaar laws.

Despite this, MeitY noted that the Tamil Nadu government has the authority to impose restrictions on online gaming within the state.

The case continues as gaming companies seek relief against the regulatory measures imposed by Tamil Nadu.

The outcome of this case could have significant implications for India's online gaming industry.