Government's gaming rules valid, privacy can't surpass health: Madras High Court

The Madras High Court upheld restrictions imposed by the Tamil Nadu Online Gaming Authority, including mandatory Aadhaar verification and a ban on online gaming between midnight and 6 am. The verdict comes as a major setback to several online gaming companies that had challenged the rules.

A bench comprising Justices SM Subramaniam and J Rajashekar ruled that the state has the power to regulate online games like Rummy and Poker, especially when played for real money, citing concerns over public health and suicides linked to excessive gaming.

Rules of Tamil Nadu Online Gaming Authority, established in 2022 to regulate the online gaming sector, prohibit gameplay during certain hours and make Aadhaar verification mandatory for user identification – measures the court deemed necessary, citing the “negative impact” of online gaming as flagged by an expert committee.

The court observed that although the Centre’s IT rules on online gaming are yet to come into force, Tamil Nadu’s regulations “fill the legal vacuum.”

It added that the state is empowered to regulate trade and commerce within its borders, particularly when it concerns citizens’ health and safety.

In its judgment, the bench said, “The State cannot remain a mute spectator when people are facing mental and physical harm.”

Addressing arguments about violation of privacy, the court referred to the landmark Puttaswamy judgment, which recognised it as a fundamental right, saying the right to privacy is not absolute and can be subject to reasonable restrictions in the interest of public welfare.

“Though personal autonomy must be respected, it cannot override the need to protect citizens’ health,” the court said while dismissing the petitions filed by online gaming platforms.

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