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Aadhaar Authentication impossible, gaming companies tell Madras High Court
The court questioned whether the regulations could genuinely be deemed arbitrary or excessive, especially considering the potential harm caused by real-money gaming.
Several online gaming companies have already begun implementing TNOGA’s regulations as of March 26. The state government had previously extended the deadline for compliance by six weeks, allowing companies additional time to adjust their operations.
On Thursday, a bench of the Madras High Court, comprising Justices S.M. Subramaniam and K. Rajasekar, heard a petition challenging the Tamil Nadu Online Gaming (Regulation) Act, 2022 (TNOGA). The act, which seeks to regulate online real-money gaming (RMG) in the state, has faced strong opposition from gaming companies.
Senior counsels Mukul Rohatgi and Sajan Poovayya appeared on behalf of leading online real-money gaming platforms, including A23, Junglee Rummy, and RummyCircle. They argued that the legislation is unconstitutional on three key grounds:
Curfew on Online Gaming – The act imposes a ban on online gaming between midnight and 5 AM, which the petitioners contend is arbitrary and lacks a rational basis. They argued that such a restriction unjustifiably interferes with players' rights and personal freedoms.
Aadhaar-Based Authentication – The law mandates Aadhaar authentication for verifying users, a requirement that gaming companies claim is "impossible to comply with." They pointed out that the central government does not permit the use of Aadhaar for such authentication due to privacy concerns and regulatory restrictions under the Aadhaar Act, 2016.
Jurisdiction Over Online Gaming – The petitioners argued that online skill-based gaming falls under the jurisdiction of the central government's Information Technology (IT) Rules, 2021. Since online gaming is governed by central laws, they claim that the Tamil Nadu state legislature lacks the authority to regulate it.
During the hearing, the court questioned whether the regulations could genuinely be deemed arbitrary or excessive, especially considering the potential harm caused by real-money gaming. The bench expressed concerns about the addictive nature of such games, their social impact, and the financial losses suffered by players, particularly vulnerable individuals.
The court is set to hear further arguments from senior advocate C. Aryama Sundaram, who will present submissions on behalf of the E-Sports Players Welfare Association. Meanwhile, Tamil Nadu Advocate General P.S. Raman and Additional Advocate General Amit Anand Tiwari are expected to present the state government's position next week.
The case is scheduled for its next hearing on March 28.
In the meantime, several online gaming companies have already begun implementing TNOGA’s regulations as of March 26. The state government had previously extended the deadline for compliance by six weeks, allowing companies additional time to adjust their operations.
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