'Right To Privacy Not...', Madras HC Upholds Tamil Nadu's Online Gaming Regulations

Representational Photo: ANI

New Delhi: In a significant ruling, the Madras High Court has upheld the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025, mandating a "blank hour" ban on online gaming from midnight to 5 am and an Aadhaar-based user verification system. The court's decision reinforces the state's authority to regulate online gaming to prevent social harm and protect vulnerable users.

As reported by the Hindustan Times, the court's judgment came in response to petitions filed by online gaming companies challenging the regulations. The companies argued that the state government was overstepping its bounds and that the regulations were an indirect attempt to prohibit online gaming.

A bench of justices SM Subramaniam and K Rajasekar held that the regulations amounted to "reasonable restrictions" that govern all fundamental rights. The court emphasized that a user's fundamental right to privacy cannot be considered absolute and needs to be balanced with public interest. "When put on a scale, public interest outweighs the right to privacy," the bench said, as it read out the operative part of the judgment.

The court noted that the state government had provided sufficient evidence to demonstrate the alarming levels of addiction to online gaming, particularly among minors. The regulations, the court held, were necessary to prevent social harm and protect vulnerable users.

As reported by the Hindustan Times, the ruling has significant implications for the online gaming industry in India. The court's decision could set a precedent for other states grappling with the potential for addiction and negative social consequences associated with online gaming. The ruling potentially empowers states to implement similar regulatory measures to safeguard health and well-being, even if it means limitations on the operational freedom of online gaming companies and users.

The online gaming companies had opposed the regulations, arguing that they were an overreach of state authority and would unfairly restrict their business operations. However, the court held that the regulations were necessary to prevent harm to society and that they struck a reasonable balance between the rights of users and gaming companies.

Key Provisions of the Regulations

The regulations, which were challenged by online gaming platforms, including Play Games 24x7, Head Digital Works, and Junglee Games India, include several key provisions:

- A ban on online gaming during "blank hours" from midnight to 5 am
- An Aadhaar-based user verification system to prevent minors from playing real-money games
- Compulsory pop-up caution alerts, including those cautioning that online games are "addictive"
- A prohibition on users under 18 playing real-money games
- A requirement for online gaming companies to conduct "know your customer" registration with Aadhaar for opening gaming accounts

The court's ruling upholding these provisions suggests that the state government has the authority to regulate online gaming to prevent social harm and protect vulnerable users.

The Madras High Court's ruling is a significant development in the regulation of online gaming in India. The court's decision reinforces the state's authority to regulate online gaming and sets a precedent for other states to follow. While the ruling may have implications for the operational freedom of online gaming companies, it is a necessary step to prevent social harm and protect vulnerable users.

As reported by the Hindustan Times, the ruling is a major victory for the state government, which had defended the regulations, citing alarming levels of addiction to online gaming. The court's decision is a reminder that the regulation of online gaming is a complex issue that requires a balance between the rights of users and gaming companies and the need to prevent social harm.