Chennai: The Madras High Court on Tuesday upheld the validity of key regulations introduced by the Tamil Nadu government to curb excessive use of online real money gaming platforms.
The court dismissed a batch of petitions filed by online gaming companies and players, challenging the legality and constitutionality of the measures.
A Division Bench comprising Justice S.M. Subramaniam and Justice K. Rajasekar ruled in favour of the state, stating that the night ban and Aadhaar-based Know Your Customer (KYC) verification requirements are “reasonable restrictions” aimed at protecting the health and welfare of citizens.
The court rejected the petitioners’ arguments that the new rules infringe upon the Right to Privacy.
It held that the Right to Privacy, though fundamental, is not absolute and can be regulated in the interest of public health and order.
The petitions had challenged several provisions of the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, as well as related regulations framed in 2025 by the Tamil Nadu Online Gaming Authority.
Specifically, the challenge was against Section 5(2), read with Section 14(1)(c) of the Act, and Regulation 4(iii) and 4(viii), which mandate Aadhaar-based KYC and restrict access to real money games between midnight and 5 a.m.
Section 5(2) empowers the authority to set limits related to time, money, and age for online games, along with procedures to regulate its functioning, while Section 14(1)(c) prohibits non-local gaming providers from offering services that contradict the state regulations.
The contested regulations mandate that users undergo Aadhaar-based login verification, supported by a second layer of authentication through a one-time password (OTP) sent to the Aadhaar-linked mobile number.
Furthermore, the “blank hour” clause restricts players from logging into real money games from 12 a.m. to 5 a.m. Gaming companies contended that the State was attempting to indirectly achieve what it had previously failed to do directly — ban online rummy and other real money games — by disguising prohibitive measures as regulatory controls.
They also argued that the Centre’s Information Technology Act comprehensively governs online gaming, leaving no room for state-level regulation in this domain.
The High Court, however, disagreed and upheld the State’s legislative competence, stating that the measures were rooted in public interest and not arbitrary in nature.
With this verdict, Tamil Nadu becomes one of the few Indian states to successfully implement stringent regulations governing online real money gaming platforms.
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