The Madras High Court on Tuesday upheld the Tamil Nadu government's restrictions on the ban from midnight to 5 AM on playing online real money games.
The court, while hearing petitions by online gaming companies to declare as unconstitutional the Tamil Nadu Online Gaming Authority (Real Money Games), Regulations 2025 enacted by the Tamil Nadu Online Gaming Authority, upheld the MK Stalin-led government's restrictions, citing that nearly 50 people have died by suicide due to online gaming losses.
The requirement for platforms to implement Aadhaar-based authentication to ensure only adults (18+) can access real-money games was also sustained by a bench of Justices SM Subramanian and K Rajasekar.
They dismissed the pleas filed by various online gaming operators who argued that the state government overstepped its constitutional bounds and that regulation should fall solely under the central government's purview.
"The state government has placed sufficient material on record to demonstrate the existence of a public health crisis arising from online gaming addiction, leading to financial ruin, mental distress, and tragically, loss of life," the court observed in its judgment.
"In light of the specific and grave situation within Tamil Nadu, exemplified by the reported deaths of at least 47 individuals, the state is well within its powers under the Constitution to enact measures to protect its citizens on grounds of public health and public order," the bench added.
The government presented data showing instances of suicides and extreme distress directly linked to massive debts accumulated through losses in online real-money games.
The dismissal is a significant setback for the online gaming companies operating in Tamil Nadu.
The mandatory "blank hours" directly impact user engagement and potential revenue during late-night periods. The Aadhaar-based authentication, while aimed at protecting minors, adds a layer of compliance and potentially affects user acquisition and ease of access.
Representatives of the online gaming industry expressed disappointment with the ruling, reiterating concerns about state overreach and the impact on legitimate businesses.
