No, this law is bat-shit insane.
You don't go to jail for modifying your car, computer or mobile phone so the reach of this law is insanely over the top.
You are however breaking the law for making illegal/unsafe modifications to your car, mobile phone; probably not your computer though.
I think it's fair to make it illegal to utilise modifications during competitive play that involves making money - it's basically a form of fraud to cheat in those circumstances.
However, if you want to mod/hack a game for your own personal enjoyment then that absolutely seems reasonable.