Madras HC denies immediate relief to RMG Companies, posts hearing on challenge to TNOGA Regulations after 2 weeks

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The Madras High Court is set to hear a batch of petitions challenging restrictions imposed by the Tamil Nadu Online Gaming Authority (TNOGA). These restrictions include Aadhaar-based verification for real money games (RMG) and a mandatory ban on gameplay between 12 a.m. and 5 a.m.

According to a report by The Hindu, the court declined to pass interim orders on February 26, 2025. Instead, a Division Bench comprising Justices S.M. Subramaniam and K. Rajasekar decided to take up the matter for final hearing in two weeks. Advocate General (A-G) P.S. Raman has been asked to file counter affidavits on behalf of the Tamil Nadu government and TNOGA within this period.

Gaming Companies Oppose Aadhaar-Based Verification

Senior counsels Mukul Rohatgi and Sajjan Poovayya represented online gaming companies Play Games 24X7 Private Limited, Head Digital Works Private Limited, and Junglee Games India Private Limited. Senior counsel V. Raghavachari appeared on behalf of the ESports Players Welfare Association.

The petitioners have urged the court to declare as unconstitutional certain sections of the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act of 2022. These sections empower TNOGA to impose limits on time, money, and age restrictions for online gaming.

The companies specifically challenged TNOGA (RMG) Regulations of 2025, particularly Regulation 4(iii) and 4(viii). These regulations make Aadhaar verification mandatory for initial login and impose a blackout period for gameplay from 12 a.m. to 5 a.m. The petitioners also sought clarity on other regulations, such as banning minors, mandatory Know Your Customer (KYC) verification, monetary limits per player, and pop-up warnings about gaming addiction.

Concerns Over Midnight Gaming Ban

Rohatgi questioned the rationale behind enforcing Aadhaar verification when KYC verification could be done using other identity documents such as a passport or driving license. He also argued against the midnight gaming ban, stating, “How can TNOGA prevent Indian players from engaging with players in the United States, given the 10-hour time difference?”

He further pointed out that skill-based games like rummy and poker can be played in clubs without time restrictions. Imposing a ban only on online platforms would be inconsistent. He warned that online gaming businesses would suffer if different states imposed varying blackout hours.

Legal and Privacy Concerns Raised

Representing the E-Sports Players Welfare Association, Raghavachari cited previous Supreme Court and High Court rulings affirming rummy and poker as games of skill. He argued that the TNOGA’s restrictions were excessive and unlawful.

“The Supreme Court has upheld privacy rights in K.S. Puttaswamy’s case. Making Aadhaar OTP verification mandatory for playing online games violates these rights,” he stated. He also compared gaming addiction warnings to cigarette packaging, saying that warnings have not stopped people from smoking, and similar gaming cautions may not impact players’ behavior.

He further contended that the government can restrict public smoking but cannot prevent individuals from smoking at home. Likewise, the TNOGA should not regulate online gaming hours for private users.

State Justifies Restrictions on Online Gaming

In defense of the restrictions, A-G P.S. Raman stated that the blank hours from 12 a.m. to 5 a.m. were based on expert recommendations. He argued that addiction rates for online gaming peak during these hours, justifying the need for restrictions.

After hearing all arguments, the Division Bench directed the Registry to schedule the final hearing in two weeks. The court will decide on the constitutionality of TNOGA’s regulations after reviewing the counter affidavits filed by the State and TNOGA.

The verdict will have significant implications for the online gaming industry in India, determining whether these restrictions remain enforceable or need revision.

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