The court upheld the state's legislative competence to regulate online games of skill, balancing individual rights against public health needs, confirming that such regulations are constitutional.

ORDER :

(S.M. SUBRAMANIAM, J.)

1. The Writ Petitioners before us are online gaming companies, player associations and individual player. These Writ petitions have been filed with a prayer seeking a Writ of Declaration to declare Section 5 read with Section 14 of the Tamil Nadu Prohibition of Online Gaming and Regulation of Online Games Act, 2022 along with the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025 (‘RMG Regulations’) as unconstitutional in so far as its application to online games of skill played with money or other stakes.

PRELUDE:

2. The State of Tamil Nadu, in order to curb the ill effects of online gaming addiction amended the Tamil Nadu Gaming Act, 1930 by enacting The Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021. The amended statute prohibited all forms of games being conducted in cyberspace, irrespective of the game being a game of mere skill, if such game is played for a wager, bet, money or other stake.

3. The validity of the Act was challenged before this Hon'ble Court in Junglee Games India Private Limited vs. The State Of Tamil Nadu, 2021, 2021 SCC OnLine Mad. 2767 The Hon'ble Madras High Court struck down Part II of the Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021, which banned wagering or betting in cyberspace, as ultra vires to the Constitution. However, the following observation was made by the Division Bench ;

"130. Accordingly, the impugned Part Il of the Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021 (Act 1 of 2021), which amends the Tamil Nadu Gaming Act, 1930, is declared to be ultra vires the Constitution in its entirety and struck down as a consequence. Nothing herein will prevent an appropriate legislation conforming to the constitutional sense of propriety being brought in the field of betting and gambling by the State"

4. Subsequently, the State Government enacted the TAMIL NADU PROHIBITION OF ONLINE GAMBLING AND REGULATION OF ONLINE GAMES ACT , 2022 (hereinafter referred to as “The Act, 2022”) on the recommendation of a Five Member Committee under the Chairmanship of retired Judge of this Hon'ble Court based on inputs received from seventeen stakeholders comprising of representatives from the online gaming industry, think tanks, political parties, players association and social activists on differentiation of real money games and other forms of games, to provide age and money restrictions, to ban advertisements, to prevent money laundering and to provide grievance redressal mechanism.

5. The Act, 2022 was challenged by various Gaming platforms including the petitioners herein in All India Gaming Federation vs. State of Tamil Nadu & Others, (2023) SCC OnLine Mad 6973 wherein this Hon'ble High Court upheld the validity of the Act while it struck down the Schedule which included Rummy and poker as games of chance. In the All India Gaming Federation Judgment (hereinafter referred to as “AIGF 2023 Judgment”), the Hon’ble Division Bench has upheld the validity of the Act, but has struck down the Schedule alone. As against this portion of the Order of the Hon'ble Division Bench, the State has filed SLP and the same is pending before the Hon’ble Supreme Court of India.

6. Section 3 of the Act, 2022 provides for establishment of an Expert Body known as the Tamil Nadu Online Gaming Authority. The Authority in exercise of the power conferred to it under Section 5 of the Act, notified the Tamil Nadu Online Gaming Authority (Real Money Games) Re