In a significant judgment on June 3, 2025, the Madras High Court upheld the legality of the Tamil Nadu government's regulatory framework that mandates Aadhaar-based KYC verification and imposes a ban on online real money games during late-night hours. The Court dismissed a series of writ petitions filed by online gaming companies and players challenging the constitutional validity of these regulations.
A division bench comprising Justice S.M. Subramaniam and Justice K. Rajasekar ruled that the State's actions were justified not merely from a paternalistic standpoint, but as a measure to protect the health and well-being of its citizens.
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"In the eyes of this Court, the submission put forth by the State is not restricted to just paternalism but goes a step beyond in ensuring the physical, mental and financial well-being of its citizens which is its incumbent duty to protect," the Court stated.
The petitioners, including companies like Play Games 24x7, Junglee Games, and Winzo Games, had argued that the new regulations—framed under the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, and the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025—were unconstitutional. They claimed that these laws interfered with their fundamental rights under Articles 14, 19(1)(g), and 21 of the Constitution.
In particular, the gaming companies opposed Section 5(2) read with Section 14(1)(c) of the Act, along with Regulation 4(iii) and Regulation 4(viii), which mandate Aadhaar-based KYC and prohibit access to real money games between 12 am and 5 am. They asserted that these provisions encroach on the Centre’s exclusive legislative competence under the Information Technology Act and violate the right to privacy.
However, the Court rejected these claims.
The right to privacy carries with it its own limitations and cannot be claimed in absolute. When put on a scale, a compelling public interest outweighs right to privacy, the judgment emphasized, referencing the Supreme Court's landmark decision in the Puttaswamy case.
The Court also clarified that Aadhaar is the most effective form of age verification because it includes a two-factor authentication process, making it more difficult for minors to access real money gaming platforms.
"By insisting on Aadhaar, it would become difficult for minors to misuse the documents unless they have access to the registered mobile number also," the bench explained.
The petitioners also argued that the night ban, termed as "blank hours," violated the principle of proportionality and targeted online gaming unfairly compared to other digital services like OTT platforms and social media. But the State defended the regulation by highlighting public health concerns.
Playing between midnight and 5AM disrupts sleep cycles, leads to anxiety, depression, and increases risk of addiction and suicide, the State submitted, citing research and data from the Director General of Police which recorded 47 suicides linked to online game addiction in Tamil Nadu between 2019 and 2024.
The Court concurred with the government’s reasoning.
Regulation becomes a priority to ensure the safety and protection of the general public, the bench held. It found that the restrictions imposed were in line with the State’s legislative competence under Entries 6 and 26 of the State List, which relate to public health and trade regulation.
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On the doctrine of repugnancy, the Court held that the State’s regulations and the Centre’s IT Rules operate in separate spheres, and there is no direct conflict warranting invalidation of the State’s law.
"There cannot be any repugnancy when the legislation in question relates to either the Union List or the State List," the Court noted, applying the doctrine of "pith and substance" to uphold the State's competence.
Ultimately, the High Court concluded that the State has the right to regulate online real money games to protect public health and maintain order. The regulations, though challenged on multiple fronts, were deemed constitutionally valid and proportionate to the larger goal of societal welfare.
The verdict affirms that while online games of skill like rummy and poker are not prohibited per se, they must comply with regulatory safeguards aimed at protecting vulnerable users and ensuring responsible play.
Case title: Play Games 24x7 Private Limited And Anr Vs State Of Tamil Nadu And Ors & Connected Matters
Case No: WP 6784 of 2025
