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Madras High Court Upholds Nighttime Ban and Mandatory KYC for Online Real Money Gaming



In a pivotal ruling with far-reaching implications for the online gaming industry, the Madras High Court has upheld key provisions of the Tamil Nadu Government’s regulations on online real money gaming. The Court endorsed both the nighttime ban on online real money games and the mandatory Aadhaar-based Know Your Customer (KYC) verification for players.

The decision came in response to a legal challenge mounted by several gaming companies, including Play Games 24x7 Private Limited. The petitioners argued that the mandatory KYC requirement infringes upon the fundamental right to privacy, as articulated in the landmark Justice K.S. Puttaswamy v. Union of India verdict.

However, the Court firmly rejected this contention. In a detailed judgment, it observed:

“The right to privacy as upheld by the Hon’ble Supreme Court in Puttaswamy's case must be understood not as an absolute right. Once declared as a fundamental right, it is subject to reasonable restrictions like other fundamental rights. When weighed against a compelling public interest, such as preventing addiction, financial loss, and societal harm, the right to privacy must yield.”

The Court held that both the KYC verification and the time-based restrictions are reasonable, proportionate measures aimed at safeguarding public interest. These regulations are especially geared towards protecting minors and preventing gambling addiction and financial exploitation.

With this ruling, the judiciary has reaffirmed the State's power to regulate emerging digital sectors in line with public welfare objectives. For the online gaming industry, the judgment marks a significant precedent, underscoring the necessity of compliance with data verification norms and responsible gaming practices.

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