HC Dismisses Challenge to Tamil Nadu’s Online Gaming Regulations

In a common order dated June 3, 2025, the Madras High Court dismissed writ petitions challenging provisions of the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025.[1]

These Regulations were notified in February of this year by the expert body established under the provisions of the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022. They aim to regulate online real money games, including provisions on minor protection, KYC requirements, gaming-hour restrictions, and more. (Click here to read our update on the Regulations).

In the present case, the petitioners, including online gaming companies, challenged Sections 5 (power to make regulations) and 14 (restrictions on non-local online game providers) of the 2022 Act and the Regulations issued under it.

The Court noted that the validity of the Act had already been upheld in All India Gaming Federation v. State of Tamil Nadu & Others,[2] wherein only the Schedule, listing rummy and poker as games of chance, was struck down. That aspect is now the subject of an SLP pending before the Supreme Court.

Key observations of the Court:

• Incidental encroachment upon Centre’s power: Applying the doctrine of pith and substance, the Court held that the legislation’s fundamental purpose was to protect public health and regulate trade within the State – matters well within the State’s legislative competence under Entries 6 and 26 in List II of the Seventh Schedule to the Constitution. Any incidental encroachment on subjects in other lists would not affect its validity.
• Online gaming provisions under IT Rules not in force yet: It was pointed out that the online gaming provisions under IT Rules, 2021, are yet to take effect and remain unenforceable due to Rule 4B, which delays obligations until three months after self-regulatory bodies are notified by MeitY. In light of this vacuum, the State Government had rightly stepped in.
• Gaming-hour restrictions (Regulation 4(viii)): The Court upheld the restriction on online real money games after midnight, accepting the cited reasons such as disturbed sleep patterns, impaired decision-making, increased risk of fraud, and cases of suicide due to loss and addiction. The public harm outweighed the individual right to free trade.
• Other platforms operating during blank hours: The Court rejected the argument that the Regulations were unfair because other online games, OTT platforms, and social media platforms operated during blank hours, noting that online real money games involve stakes.
• Aadhaar-based authentication (Regulation 4(iii)): The Court found no strong reason to dilute the Aadhaar requirement, stating that the two-factor authentication test provides a necessary safeguard to confirm a player’s age. Aadhaar verification also offers a lower risk of manipulation compared to other forms of ID.

With this, the Court dismissed the writ petitions.

[1] Play Games 24×7 Private Limited & Anr. v. State Of Tamil Nadu & Ors. (WP Nos.6784, 6794, 6799, 6970, 8832 and 13158 of 2025).

[2] 2023 SCC OnLine Mad 6973.