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Economic Times
2 days ago
- Business
- Economic Times
Madras HC upholds Tamil Nadu's restrictions on real money games
The Madras High Court on Tuesday upheld the Tamil Nadu online gaming authority's restrictions on real money games, including a ban on gameplay between midnight and 5 am, and mandatory Aadhaar verification, rejecting legal challenges by gaming companies. The development follows a February petition where companies challenged regulations that required mandatory KYC verification, Aadhaar authentication and restricted hours of gameplay. These restrictions were imposed under Sections 5(2) and 14(1)(c) of the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022.A division bench comprising Justices SM Subramaniam and K Rajasekar ruled that the State has the authority to make laws on online gaming under Entry 6 (public health and sanitation) and Entry 26 (trade and commerce within the State) of the State List in the Constitution, which covers matters exclusively under states' jurisdiction. In their arguments, Head Digital Works Pvt. Ltd., which develops online games of skill in India, and two other gaming companies, Junglee Games India Pvt Ltd, and WinZO, insisted that the current restrictions based on time, age and monetary factors are unconstitutional. Code of ethics and regulatory framework In March, ET reported that real money gaming industry bodies All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and Federation of Indian fantasy Sports (FIFS), jointly came up with a 'code of ethics' encouraging responsible gaming practices. The gaming industry bodies include companies such as Dream11, My11Circle, Khelo Fantasy Live, SG11 Fantasy, WinZO, Games24X7, Junglee Games etc. The code of ethics had provisions similar to the curbs placed by the Tamil Nadu the new GST regime, the real-money gaming (RMG) industry faces a 28% GST levy on the deposits made by players on these platforms. Last September, India's top GST investigation agency, the Directorate General of GST Intelligence (DGGI), stated that the real money gaming sector topped the list of tax evasion, with dues to the tune of Rs 1.1 lakh crore. The agency issued show cause notices to 34 entities and took action against 118 Indian and 658 foreign companies. Trends shaping the RMG sector In FY22-23, India's largest RMG platform, Dream11, recorded gross gaming revenue of Rs 7,167 crore. Of this, Rs 976 crore was spent as promotional credits to players. There are close to 568 million users of online games in India, and nearly 25% of them are pay-and-play customers. In fiscal year 2023, the RMG segment in online gaming was estimated to be a $2 billion business. According to the latest EY-FICCI report, Esports and casual gaming grew to Rs 5,300 crore in 2024, and is projected to reach Rs 6,300 crore in 2025 and Rs 8,300 crore in 2026.
Time of India
2 days ago
- Business
- Time of India
Madras HC upholds Tamil Nadu's restrictions on real money games
The Madras High Court on Tuesday upheld the Tamil Nadu online gaming authority 's restrictions on real money games , including a ban on gameplay between midnight and 5 am, and mandatory Aadhaar verification, rejecting legal challenges by gaming companies. The development follows a February petition where companies challenged regulations that required mandatory KYC verification, Aadhaar authentication and restricted hours of gameplay. These restrictions were imposed under Sections 5(2) and 14(1)(c) of the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022. A division bench comprising Justices SM Subramaniam and K Rajasekar ruled that the State has the authority to make laws on online gaming under Entry 6 (public health and sanitation) and Entry 26 (trade and commerce within the State) of the State List in the Constitution, which covers matters exclusively under states' jurisdiction. In their arguments, Head Digital Works Pvt. Ltd., which develops online games of skill in India, and two other gaming companies, Junglee Games India Pvt Ltd, and WinZO, insisted that the current restrictions based on time, age and monetary factors are unconstitutional. Code of ethics and regulatory framework Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories In March, ET reported that real money gaming industry bodies All India Gaming Federation (AIGF), E-Gaming Federation (EGF) and Federation of Indian fantasy Sports (FIFS), jointly came up with a 'code of ethics' encouraging responsible gaming practices. The gaming industry bodies include companies such as Dream11, My11Circle, Khelo Fantasy Live, SG11 Fantasy, WinZO, Games24X7, Junglee Games etc. The code of ethics had provisions similar to the curbs placed by the Tamil Nadu government. Under the new GST regime, the real-money gaming (RMG) industry faces a 28% GST levy on the deposits made by players on these platforms. Last September , India's top GST investigation agency, the Directorate General of GST Intelligence (DGGI), stated that the real money gaming sector topped the list of tax evasion, with dues to the tune of Rs 1.1 lakh crore. The agency issued show cause notices to 34 entities and took action against 118 Indian and 658 foreign companies. Trends shaping the RMG sector In FY22-23, India's largest RMG platform, Dream11, recorded gross gaming revenue of Rs 7,167 crore. Of this, Rs 976 crore was spent as promotional credits to players. There are close to 568 million users of online games in India, and nearly 25% of them are pay-and-play customers. In fiscal year 2023, the RMG segment in online gaming was estimated to be a $2 billion business. According to the latest EY-FICCI report, Esports and casual gaming grew to Rs 5,300 crore in 2024, and is projected to reach Rs 6,300 crore in 2025 and Rs 8,300 crore in 2026.
Mint
3 days ago
- General
- Mint
Madras HC says right to privacy is not absolute; Tamil Nadu government is required to prevent social harm
In a significant ruling, the Madras High Court on Tuesday said the Right to Privacy is not absolute and the Tamil Nadu governmentis required to prevent social harm. The court was hearing petitions challenging the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations 2025, mandating a 'blank hour' midnight to 5 AM ban on gaming and an Aadhaar-based user verification system. A Madras High Court bench of justices SM Subramaniam and K Rajasekar dismissed the petitions, saying that the online gaming regulations amounted to 'reasonable restrictions' that govern all fundamental rights. The bench added that a user's fundamental right to privacy cannot be considered absolute and needs to be balanced with public interest. 'When put on a scale, public interest overweighs the right to privacy,' it said. The court reserved its order on 30 April, saying the Tamil Nadu government can 'step in' if online real-money games are addictive and cause social harm, reported Hindustan Times. Senior counsel Mukul Rohatgi and Sajjan Poovayya, representing gaming companies, opposed the regulations, saying that the Union government already regulated such games. They also argued that the Tamil Nadu government was trying to indirectly prohibit online gaming under the guise of protecting users from addiction. Digital gaming platforms such as Play Games 24x7, Head Digital Works, and Junglee Games India, opposed provisions prohibiting users under 18 from playing real-money games, 'know your customer' registration with Aadhaar for opening gaming accounts, and ban on playing during 'blank hours'. Defending the online gaming regulations, the Tamil Nadu government said that users often included minors and that addiction was ruining their health. The latest Madras High Court judgement will reinforce the Tamil Nadu government's authority to regulate online gaming and would also empower other states to implement similar regulatory measures to safeguard health and well-being of users.
Hindustan Times
3 days ago
- Politics
- Hindustan Times
Right to privacy not absolute, state has to prevent social harm: Madras HC
The Madras high court on Tuesday said the fundamental right to privacy is not absolute and that the state has to prevent social harm, as it dismissed petitions challenging the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025. Online gaming companies challenged the regulations, mandating a 'blank hour' midnight to 5am ban on gaming and an Aadhaar-based user verification system. A bench of justices SM Subramaniam and K Rajasekar said the regulations amounted to 'reasonable restrictions' that govern all fundamental rights. It added that a user's fundamental right to privacy cannot be considered absolute and needs to be balanced with public interest. 'When put on a scale, public interest overweighs the right to privacy,' the bench said as it read out the operative part of the judgment. The ruling reinforces the state's authority to regulate online gaming, particularly real money games, to prevent social harm and protect vulnerable users. It could set a precedent for other states grappling with the potential for addiction and negative social consequences associated with online gaming. The ruling potentially empowers states to implement similar regulatory measures to safeguard health and well-being, even if it means limitations on the operational freedom of online gaming companies and users. The court reserved its order on April 30, saying the state government can 'step in' if online real-money games were addictive and caused social harm, provided the regulations balanced the fundamental rights of users and gaming companies. Senior counsel Mukul Rohatgi and Sajjan Poovayya, representing gaming companies that offer online real-money games, opposed the regulations. They argued that the Union government already regulated such games. The lawyers said the Tamil Nadu government was trying to indirectly prohibit online gaming under the guise of protecting users from addiction. Online gaming platforms, including Play Games 24x7, Head Digital Works, and Junglee Games India, particularly opposed provisions prohibiting users under 18 from playing real-money games, 'know your customer' registration with Aadhaar for opening gaming accounts, and ban on playing during 'blank hours'. The gaming platforms challenged the rule mandating compulsory pop-up caution alerts, including those cautioning that online games are 'addictive.' The state government defended the regulations, citing alarming levels of addiction to online gaming. It said that users often included minors and that addiction was ruining their health.
Time of India
22-05-2025
- Politics
- Time of India
Supreme Court stay on Tasmac probe a setback for ED
NEW DELHI: Supreme Court's stay on ED investigation against Tasmac, Tamil Nadu govt entity responsible for distribution of liquor in the state, has come as a setback and surprise for the agency which, validated by Madras high court order, had intensified its probe into the case leading to "discovery of evidence" of alleged collusion of distilleries and bottlers with officials in selling liquor above the maximum retail price as part of a scam. SC faulted the agency for conducting searches on Tasmac when no 'predicate offence' had been registered against state govt undertaking. ED sources pointed out that Madras HC, in a detailed order, had struck down the challenge made on the same ground. In its order, HC had addressed the state govt's objection and held that a predicate offence, or FIR, was not mandatory to initiate an investigation under PMLA. Sources also said the two-judge HC bench of Justices S M Subramaniam and K Rajasekar, in its April 23 order, had rejected Tamil Nadu govt's plea that ED, before carrying out any search and seizure operation on a state-owned entity, must take "prior consent" from state govt to maintain sanctity of the federal structure. The bench had dismissed three writ petitions filed by TN govt and Tasmac seeking to stop ED investigation into the alleged liquor scam. The HC bench had said the precondition of getting consent from the state before conducting search was "completely illogical and bereft of conscience". "How can a raid or search be conducted on a state-owned company in a surprise manner if permission is to be obtained beforehand? How can a search by an investigating agency even hold good if such absurd conditions are made?" the two judges had asked. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo On Thursday, SC observed that the agency had transgressed the federal structure. Sources said in searches at various premises of Tasmac on March 6, ED found "evidence" of manipulation in supply orders, payment of bribes for allowing sale of liquor above MRP, grant of bar licences and transfer and posting of officials. The documents seized during the raids also revealed collusion of officials where excess charges of Rs 10-30 per bottle was illegally levied at retail outlets, sources said.
