Madras HC Upholds Tamil Nadu’s Online Gaming Regulations

The Madras High Court has upheld the Tamil Nadu government’s recent regulations on the real money gaming (RMG) sector, dealing a blow to several gaming firms such as Play Games 24×7, Junglee Games and WinZO that had challenged the rules.

A division bench comprising Justices SM Subramaniam and K Rajasekar dismissed all the writ petitions filed by a host of RMG companies arguing that only the Centre can regulate online games under the IT Act. 

The bench ruled that the state is within its rights to legislate on matters of public health and trade within its borders. This includes regulating games of skill when played for money.

The key issue was whether Tamil Nadu could impose rules like banning online real money games between midnight and 5 AM. The court noted that the restriction was valid, citing concerns over addiction, mental health, and suicides linked to gaming losses.

The companies had also claimed that the rules violated their rights under Articles 14, 19(1)(g), and 21 of the Constitution. The court disagreed, saying the rules were reasonable and aimed at protecting the public.

Notably, this is the second major ruling on the matter. In 2023, the Madras High Court upheld Tamil Nadu’s law on online gambling, but it also removed rummy and poker from the list of banned games, ruling that they are not games of chance. 

The court’s decision focused on the difference between games of skill and games of chance, finding that rummy and poker, when played online, involve a degree of skill that makes them distinct from games of pure chance.

The Tamil Nadu government can currently enforce its regulations on real money online games, including the prohibition on minors and a night ban, as upheld by the Madras High Court. However, a pending challenge in the Supreme Court could still lead to a change in the final outcome.

Notably, Tamil Nadu’s rules, introduced in February 2025, place strict curbs on online gaming platforms. These include:

• A ban on gameplay between midnight and 5 AM.

• Mandatory pop-up warnings every 30 minutes after one hour of play.

• Prohibitions on minors using the platforms.

• Clear display of spending limits and money spent so far.

• KYC verification using Aadhaar and OTP at login.

• Warnings about the addictive nature of online gaming.

The state issued these rules through the Tamil Nadu Online Gaming Authority. The regulations governing online rummy and poker in Tamil Nadu, including mandatory Aadhaar verification and a ban on online gaming between midnight and 6 am, are based on a 2023 court ruling.