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Informist, Tuesday, Jun. 3, 2025

NEW DELHI – The Madras High Court on Tuesday upheld the laws enacted by the Tamil Nadu government that provided for mandatory know-your-customer verification through Aadhar, age and time restrictions for online gaming, particularly real money games. The high court said that the state government is not barred from enacting laws regulating online real money games.

The court said that online real money games such as rummy and poker have created public health risks in the state of Tamil Nadu. "In true essence, the online real money games is a trade activity, which if left unregulated has immediate implications on health of the public," said the court. The bench of Justices S.M. Subramaniam and K. Rajasekar said there have been widespread reports across the state of Tamil Nadu on the impact that online real money games had on people including reports of suicide and other adverse health issues.

"The state cannot remain a mute spectator when the population at large is exposed to serious physical, mental and financial risks due to a constant exposure to a specific online entertainment/games/trade. In circumstances where a total prohibition is not possible at least a minimum of regulation becomes a necessity," said the court. It is a case of public health and the state government has full competence to pass legislation to govern matters affecting public health, the high court added.

The petitioners, which were online gaming companies such as Play Games 24x7 Pvt. Ltd., Head Digital Works Pvt. Ltd., had challenged the insistence of Aadhar based authentication for registration of users under know-your-customer norms. There is no strong reason to dilute the Aadhar requirement as the two factor authentication test being a necessary infrastructure to strictly confirm to the criteria of a player, said the court. Further, the scope of manipulation or deceit is comparatively lesser in Aadhar verification when compared to other identification proofs, said the high court.

On the challenge to Tamil Nadu government's law providing for an age restriction of 18 years, the high court said its previous ruling in another case had already upheld the power of state to make these restrictions in regard to playing online games. Further, the laws had called for blank hours for the real money games. This meant that no login of games shall be allowed during 0000 IST to 0500 IST. Rejecting the contention of petitioners on blank hours, the high court noted the reasons by the state government for the time limit, which included impact on cognitive function and decision-making, circadian rhythm and brain function, night-time problem usage and others. The adverse effects are much larger to the people than the need for securing the individual right to free trade, said the high court.

Regulation of online gaming becomes a priority to ensure the safety and protection of the general public and the actions of the government cannot be termed baseless or disproportionate, said the high court. On arguments that Tamil Nadu government's law was encroaching on the right to privacy of individuals, the high court said the right carries its own limitations and cannot be claimed in absolute. When put on a scale, a compelling public interest outweighs the right to privacy, said the court.  End

Reported by Surya Tripathi

Edited by Ashish Shirke

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