Indian court reserves verdict on petitions against TN’s real money gaming rules
The Madras High Court reserved its verdict on a batch of petitions filed by leading online gaming companies challenging the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025. The rules, introduced by the state government earlier this year, impose strict conditions on online real money gaming (RMG) platforms, including bans for minors, Aadhaar-based KYC, and playtime restrictions.
Gaming firms challenge key provisions
The division bench of Justices S M Subramaniam and K Rajasekar heard final arguments and written submissions from the counsels representing Play Games 24×7 Private Limited, Head Digital Works Private Limited, and Junglee Games India Private Limited. The companies challenged specific clauses in Regulation 4 of the 2025 Rules.
Key objections include:
Regulation 4(i): Ban on players under 18 years from accessing RMG platforms.
Regulation 4(iii): Mandatory Know Your Customer (KYC) registration using Aadhaar number and OTP verification.
Regulation 4(viii): Ban on real money gaming between 12 am and 5 am, also known as “blank hours”.
Additional requirements such as cautionary pop-ups warning that “Online Gaming is Addictive in Nature” were also opposed.
Stringent rules aim to curb gaming addiction
The Tamil Nadu government notified the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025 in February to regulate the growing online RMG industry. The move followed rising concerns over gaming addiction and financial losses, particularly among youth.
Key features of the regulations include:
Minors prohibited: Players below 18 are not allowed to register or participate in RMGs.
Mandatory KYC: Platforms must authenticate users via Aadhaar and verify the linked mobile number.
Playtime alerts: Pop-up warnings must be shown after one hour of continuous play, with additional alerts every 30 minutes.
Spending limits: Users must set daily, weekly, and monthly limits on deposits and receive reminders of their spending.
Restricted hours: No access to real money gaming is allowed between 12 am and 5 am daily.
Warning labels: All platforms must show clear disclaimers about the addictive nature of online gaming.
Legal background and pending appeals
This is not Tamil Nadu’s first attempt to regulate online games. In 2022, the state passed the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act. It sought to classify games like rummy and poker as games of chance and banned them. However, the Madras High Court struck down parts of the law, raising concerns over constitutional validity and classification of skill-based games.
Enforcement and compliance challenges
Despite the detailed structure of the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025, enforcing them presents practical hurdles. Implementing the midnight-to-5 am restriction will require gaming platforms to monitor user activity and block access during restricted hours, possibly through server-side controls or IP-based enforcement.
There is also the risk of players using virtual private networks (VPNs) or accessing platforms based in other states or countries where such restrictions do not apply. Another significant concern is the creation of multiple or fraudulent accounts, making it essential for gaming operators to strengthen their user verification systems and fraud detection technologies to ensure full compliance.
