State has right to impose restrictions on online gaming firms to protect public, says TN govt before Madras HC

CHENNAI: The State imposing regulations on the online games, including rummy and poker, is permissible as the duty of a State government is to protect its citizens and public health, said the Tamil Nadu government before the Madras High Court, countering the petition moved by the online gaming firms.

A division bench of Justice SM Subramaniam and Justice 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 midnight 12 am to 5 am and making Aadhar verification as mandatory to use the gaming platform.

Advocate General (AG) PS Raman and Additional Advocate General for Tamil Nadu in the Supreme Court Amit Anand Tiwari appeared for the State defending the regulations imposed on the firms.

AG contended that Section 5 of the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022 authorises the authorities to make regulations, hence the State certainly has the right and power to regulate and control the online games.

The State undoubtedly would initiate measures to protect public health, thus, the online firms cannot challenge the blank hours as a division bench has upheld the time restriction, the AG submitted.

In the case challenging the ban on online rummy before another division bench of the HC, the petitioners submitted that they mandated Aadhar verification to restrict the children below the age of 18 from using the gaming portal, but now they are arguing against the Aadhar verification insisted on by the State government, said the AG.

State insisting on Aadhar verification over other identifications such as passport, driving licence and voter ID as contended by the online gaming firms is because the Aadhar is two step verification with OTP confirmation unlike others which are one step verification, the AG submitted.

The AG also defended the State on the aspect that the online gaming firms alleged that the State has no power to impose regulations as they are covered under the central act, Information Technology Act, 2000.

Referring to Rule 4B of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, the AG submitted that without the formation of a self-regulatory body for online games, the IT Act, 2000, cannot come into action.

If the contention of the online firms challenging the blank hours is accepted, then cinema theatre owners would knock on the doors of the State to allow them to function around the clock, hence the submission of the gaming firms cannot be accepted, contended the AG.

The bench posted the matter to April 7 for the reply of the online gaming firms.