In a significant ruling, the Madras High Court upheld the Tamil Nadu government's regulations on online real money games, affirming the imposition of a night-time ban and mandatory Know Your Customer (KYC) verification through Aadhaar. The court dismissed petitions filed by online gaming companies challenging these provisions, emphasizing the state's responsibility to protect public health and well-being.
The regulations in question, introduced by the Tamil Nadu Online Gaming Authority, mandated that online real money gaming platforms implement a "blank hour" from 12:00 AM to 5:00 AM, during which users are prohibited from accessing the games. Additionally, the regulations required players to undergo KYC verification at the time of account creation, utilizing Aadhaar authentication followed by a One-Time Password (OTP) sent to the phone number linked with the Aadhaar number.
Online gaming companies contested these regulations, arguing that they infringed upon their right to conduct business under Article 19(1)(g) of the Constitution and violated the right to privacy under Article 21. They contended that the state was attempting to impose a de facto ban on online games under the guise of regulation and that the mandatory Aadhaar-based KYC was unconstitutional.
However, the court rejected these arguments, stating that the right to privacy is not absolute and can be subject to reasonable restrictions. It emphasized that the state's actions were aimed at safeguarding public health and preventing potential addiction among users, particularly during late-night hours. The court noted that the regulations were a reasonable exercise of the state's power to protect its citizens.
The bench, comprising Justices SM Subramaniam and K Rajasekar, acknowledged the concerns raised by the gaming companies but found the state's regulations to be justified. They highlighted the potential risks associated with unrestricted access to online gaming platforms during late-night hours and the importance of implementing measures to mitigate these risks.
This ruling underscores the growing tension between the regulation of online gaming and the protection of individual rights. While the court upheld the state's regulations, it also set a precedent for future challenges to similar laws, balancing the interests of public health with the rights of businesses and individuals.
In conclusion, the Madras High Court's decision reinforces the authority of state governments to regulate online gaming activities within their jurisdiction, provided such regulations are reasonable and aimed at protecting public health and welfare. The ruling serves as a critical reference point for ongoing debates and legal challenges concerning the regulation of online gaming in India.
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