Chennai, February 26: Online gaming companies have moved the Madras High Court, seeking to declare certain provisions of the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025 as unconstitutional.
A division bench comprising Justices S M Subramaniam and K Rajasekar heard petitions filed by Head Digital Works Private Limited and two other firms, all engaged in developing and offering online skill-based games in India. The hearing has been adjourned by two weeks to allow both the central and state governments to file their counter affidavits.
Key Provisions Under Challenge
The companies have specifically contested:- Regulation 4 (iii): Mandatory Aadhar-based KYC verification during initial login, authenticated via OTP verification linked to the Aadhar number.
- Regulation 4 (viii): Implementation of “blank hours” from 12 midnight to 5 a.m., during which real money games cannot be accessed.
Legal Challenge and Past Precedents
The petitioners contended that the Tamil Nadu government had previously attempted to ban skill-based online games, but the Madras High Court struck down such restrictions on two occasions. They argued that the new Real Money Games (RMG) Regulations were another attempt to indirectly impose similar restrictions, violating their constitutional right to conduct business under Article 19(1)(g).They also accused the state government of disregarding Supreme Court and High Court rulings that have upheld the legitimacy of skill-based games. The companies maintain that the new regulations are a "colourable exercise of power" aimed at obstructing their lawful business operations.
The case is set for further hearing in two weeks after the government submits its responses.