Govt can step in to curb evils of online gaming: HC

The Madras High Court on Thursday said that if online real money games (RMG) are addictive and cause social harm, the state government can “step in,” provided the regulations “strike a balance” with the fundamental rights of players and gaming companies.

The court was hearing petitions filed by online gaming companies opposing the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025, which sets a “blank hour” midnight-5am ban and makes an Aadhaar-based user verification system mandatory.

“The state can take care of people in Tamil Nadu... some activities are more addictive than others and thus, the State has to control those. In the high court’s opinion, if real money gaming has an addictive nature to it and has a social impact, then the state has to step in,” said a bench of Justices SM Subramaniam and K Rajasekar.

The remarks, while interim as the hearing goes on, appears to be consistent with the state’s stand.

Senior counsel Mukul Rohatgi and Sajjan Poovayya, representing gaming companies that offer online RMG, argued that such games are already regulated by the Union government.

They claimed the Tamil Nadu government, under the guise of protecting residents from addiction, was trying to indirectly prohibit online gaming in the state.

The issue also figured in Parliament on Wednesday. Union minister Ashwini Vaishnaw stated that betting and gambling, including online gaming, are state subjects, responding to DMK MP Dayanidhi Maran’s query on a central government ban. Maran accused the government of avoiding its “moral responsibility,” while Vaishnaw asserted adherence to the Constitution’s federal structure.

Rohatgi, representing Playgames 24X7, argued that Tamil Nadu was behaving like a “great grandfather” by insisting residents must sleep for five hours between midnight and 5am. He questioned how a ban could be imposed on RMG alone while allowing other games or television viewing all night.

The court, however, noted a difference between other games and RMG, saying the latter can be addictive. “No one is going to lose all money or die because they lost in football. But here (in real money games) it can happen,” it remarked.

“The State is just saying there is one thing that we can ensure. People residing are protected. If someone in Delhi or Karnataka wants to play all night, we can’t do anything,” the high court said.

Rohatgi proposed that players should be permitted to choose their five-hour blank period at any time of day.

The court will continue hearing the matter on Friday.