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Karnataka High Court strikes down the state's online gambling law as unconstitutional. The High court had reserved its judgement on December 22. Several petitioners had challenged the constitutional legitimacy of the law. The law had prohibited all types of internet gaming where the move of money is involved.
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Online gambling was banned in Karnataka since last year.
Karnataka High Court struck down the Act 2021 banning online gaming with stakes and betting in the state as unconstitutional. The verdict will set a precedent for the scope of gaming regulations in India. Fantasy sports apps and real money gaming platforms can restart their operations in Karnataka.
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Dream11 has stopped its services in Karnataka due to an online gambling ban. The fantasy sports app's founders Bhavit Sheth and Harsh Jain have moved the Karnata High Court to quash the FIR.
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Karnataka has banned online gambling in the state. Mobile Premier League has suspended its services in Karnataka. The state is home to 91 Indian gaming companies and developers which employ about 4,000 people. One of the companies blocked access to Karnata users through their IP addresses and KYC information. The source added that the company also had VPN blockers to ensure Karnatta users wouldn't bypass the ban. There's an entire ecosystem thriving in Bengaluru. It is also India's startup hub.
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All India Gaming Federation (AIGF) and four real-money gaming companies have moved the Karnataka High Court challenging the state government's online gambling law that came into effect on October 5. The law bans online games that are played with stakes. AIGf CEO Roland Landers said the law would harm the domestic online gaming industry. The Madras High court had recently struck down the amendment made to the Tamil Nadu Gaming Act, 1930 that imposed ban on online game played on stakes and a similar act passed by the Kerala government to such onlinegames was struck by High Courts.
MPL, Games24x7, AIGF, and Gameskraft have filed writ petitions in the Karnataka High Court appealing against the state's online gambling law that came into effect on October 5. The law had outlawed all forms of online gaming where transfer of money is involved. Several Indian states have banned or tried to ban real-money games in recent years. The Supreme Court upheld fantasy sports as a game of skill in July this year. South India is a big market for games like Rummy. There are more positives than negatives in real money gaming sector in last two months.
Karnataka Police (Amendment), Act 2021 has received the Governor’s assent. It bans all forms of wagering or betting except horse racing and lottery. The Kerala high court lifted the Kerala government”s ban on Rummy calling it a game of mere skill. Several websites that offered cash games have been banned for residents of Karnataka. Betting on the outcome of any such games is punishable under the new law with imprisonment of up to three years and/or a fine of Rs 1 lakh. Websites that offer cash game now detect the user‘s device location and notifies that the jurisdiction does not allow them to play with cash.
The ongoing pandemic has increased the user base of the online gaming industry. Google-KPMG report predicts the industry will grow to $1 billion by 2021. Paytm First Games, Stick Pool Club, Mobile Premier League (MPL), etc. witnessed a huge spike in user bases during the lockdown.