Online gaming firms challenge State's restrictions on real money games in Madras HC

CHENNAI: The online gaming firms offering real money games made their submissions against the restrictions brought in by the state government before the Madras High Court, claiming the State has overstepped their jurisdiction as these firms already come under the Centre's Information Technology Act of 2000.

A division bench of Justices SM Subramaniam and K Rajasekar heard the batch of petitions moved by online game providers challenging the regulations made by the State prohibiting the players from using the online platform between 12 am and 5 am and making Aadhar verification mandatory to use the gaming platform.

Representing an online RMG firm, senior counsel Mukul Rohatgi submitted that the implementation of blank hours impacts their businesses and cannot be construed as regulation, as it violates Article 19 (1) g of the Constitution (Rights to practice any profession or carry on any trade, business or occupation).

He argued that the State could not prohibit business by citing public health and that the blank hours restriction was unreasonable and arbitrary. If one is hungry, they can order food online at even 2 am because it is allowed to function round the clock, the government cannot stop an individual from doing so even though it is unhealthy, he reasoned.

Rohatgi added that the apex court held us as a game of skills and not of chance. If that is the position, how can the State impose regulations on us but allow other online games to operate 24 hours, he countered.

Senior Sajan Poovayya, representing online gaming providers, submitted that the State cannot compel the users to mandate Aadhar verification. He also relied upon a nine-bench order of the Supreme Court in KS Puttaswamy (retired judge) vs Union of India 2018 judgment and submitted that the Constitutional bench held that mandating Aadhar verification is limited to government subsidy programs and cannot be extended.

He said that Reserve Bank of India norms allow verification with passport, driving licence, voter ID or other documents, and wondered why the State was compelling the users for Aadhar verification.

Justice SM Subramaniam intervened and observed that not all the games were addictive in nature. In search of making money, the users stick to the online gaming platforms beyond time limits, hence, the State should step in for restrictions, he said.

The court posted the matter for continuation on March 28, as the online gaming providers' submissions were not completed.