Chennai, June 3, 2025
In a verdict impacting the online gaming industry, the Madras High Court has upheld the Tamil Nadu government’s decision to impose a night-time ban and mandatory Know Your Customer (KYC) requirements for online real money games. The ruling came in response to a series of petitions challenging the legality and practicality of the state’s regulatory measures.
Background of the Case
The petitioners, including gaming companies and individual players, contested specific provisions of the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, arguing that the restrictions infringed upon their right to trade and play responsibly.
Among the most debated provisions were:
• A ban on playing real money games between 12 a.m. and 6 a.m.
• Mandatory KYC verification for all users, including Aadhaar-based authentication.
The petitioners argued these conditions were excessive, violated privacy, and hindered the operation of legitimate businesses.
Court’s Reasoning
Dismissing the challenges, the Division Bench comprising Chief Justice Sanjay V. Gangapurwala and Justice P.D. Audikesavalu held that the state was well within its legislative competence to regulate online gaming in the interest of public health and safety.
The court noted rising incidents of gaming addiction and related suicides, particularly among youth, as justifying reasonable restrictions under Article 19(6) of the Constitution. The judges emphasized that online gaming with stakes falls within the state’s purview of regulation under Entry 34 (Betting and Gambling) of List II in the Constitution.
“We do not find the regulatory framework to be manifestly arbitrary or unconstitutional,” the court observed.
The court also clarified that the KYC requirement ensures accountability and protection against illegal activities, including money laundering and underage gaming.
The verdict has received a mixed response. While child rights activists and public health experts welcomed the court’s approach, stakeholders in the gaming industry expressed concerns about operational hurdles and compliance costs.
