HC upholds TN law regulating online real-money games

Chennai: A Tamil Nadu law regulating online real-money games like rummy and poker by introducing age, money, time and ad restrictions, besides two-stage Aadhaar-based verification, has been upheld by
Madras high court
.
"In true essence, the online real money games is a trade activity, which, if left unregulated, has immediate implications on health of the public," a division bench of Justice S M Subramaniam and Justice K Rajasekar said on Tuesday.
Bench made the observation while dismissing a batch of petitions moved by online gaming platforms challenging validity of restrictions.
Refusing to concur with the platforms which contended that a state govt lacks power to bring in such restrictions, the court said, "Both the Union and state govts have power to enact laws in their own respective subject matter apart from the common pool as enabled in List III (concurrent list).
This court cannot hold that state is barred from enacting laws regulating online real money games. It is covered under the subject matter of public health and sanitation which comes under List II (state list)," judges said.
The argument that Information Technology Rules, 2021 already prescribe a regulatory framework for intermediaries, including online gaming platforms, and hence the state cannot frame a subordinate legislation is unacceptable, the court said.
"This court views that the state is fully within its competence to enact laws pertaining to online real money games. This court on perusal of the provisions of the Act (state legislation) finds no contradictions or provisions that run contrary to the central rules in force," the bench said.
Moreover, the provisions related to online gaming under IT Rules, 2021 is yet to take effect and remains unenforceable as of today.
So there exists a vacuum in regulating online games, the court pointed out. The judges added that they are of the view that the state govt has rightfully taken adequate steps to fill in the vacuum by framing the legislation.
Rejecting argument that mandatory Aadhaar verification violates privacy of a player, bench said, "Right to privacy carries with it its own limitations and cannot be claimed in absolute. When put on a scale, a compelling public interest outweighs right to privacy."

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