Madras High Court upholds Tamil Nadu's real-money gaming regulations

The Madras High Court has dismissed petitions challenging Tamil Nadu's real-money gaming rules that ban platforms from operating between midnight and 5 a.m, citing player welfare

The Madras High Court on Tuesday upheld Tamil Nadu’s regulations that impose time limits on real-money games (RMGs) such as rummy and poker.

 

The state’s regulations prohibit real-money gaming platforms from operating between midnight and 5 am.

 

A Bench of Justice S M Subramaniam and Justice K Rajasekar dismissed the writ petitions filed by Esport Players Welfare Association and gaming companies such as WinZO, Head Digital Works, Junglee Games, and Games24x7.

 

Gaming companies and their associations are expected to challenge the order in the Supreme Court, according to people in the know.  

 

The High Court noted regulations framed by the Tamil Nadu Online Gaming Authority were not paternalistic but were intended to ensure the physical, mental, and financial well-being of the state’s people. 

 

It said the petitioners’ contention that no blanket hours were imposed on consuming content on OTT (over the top) platforms, unlike real-money games, was not sustainable because there were no monetary stakes involved.

 

“It is only in online RMGs where there are stakes involved (that) the players get attracted by the prospect of rewards, which could lead to addictive behaviour and, more often than ever, (the players) tend to get lost in the pleasure of the game,” the court observed.  

 

The court said there was no strong reason to dilute the need for Aadhaar-based authentication. This is required to verify the age of the participants, given that the law prohibits minors from playing real-money games.

 

“The scope for manipulation or deceit is less in Aadhaar verification (than in) other ID proofs,” it noted. 

 

It added the state was authorised to pass legislation to govern matters affecting the public health of its citizens, citing that games such as rummy and poker had created public-health risks in Tamil Nadu. 

 

An industry participant said: “From the industry’s perspective, the state’s powers are restricted to betting and gambling. RMGs in India are a game of skill and not chance. By consequence, the powers to regulate online games of skill rest only with the Centre.”

 

The person added that the ban hours prohibited professionals from playing in international tournaments. 

 

“Players cannot play international tournaments held during the hours when the blanket ban is imposed (midnight to 5 am). They are missing out. The right to livelihood is in question,” the person added.