Gaming firms resume services after Karnataka lifts ban on online gambling
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Gaming platforms including PlayerzPot, A23, Fantasy Akhada and Baazi Games told Moneycontrol that they have resumed operations in Karnataka.
February 16, 2022 / 09:06 PM IST
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Many online gaming firms have resumed services in Karnataka after the state's High Court, on February 14, struck down the provisions of the Karnataka Police Act that deals with online gambling as unconstitutional.
On October 5 last year, Karnataka government had notified the online gambling law with immediate effect, which was followed by online gaming companies shutting down operations in the state.
Gaming platforms including PlayerzPot, A23, Fantasy Akhada and Baazi Games told Moneycontrol that they have resumed operations in Karnataka.
"We had halted services when the state had banned online gaming and when the announcement came of the ban lifting we resumed services. We are already seeing sufficient amount of activity on the platform despite not announcing that we have resumed services in Karnataka. People have started directly accessing the app. Some percentage of users have started accessing and playing on the app," said Mitesh Gangar, Co-founder and director of PlayerzPot.
He added that he is seeing good interest from users of Karnataka for cricket on the platform.
Puneet Singh, Co-Founder and COO, Baazi Games said that Karnataka has always been a key market for the entire industry considering their appreciation and love for games of skill. "As far as our operations are concerned, we will be covering the entire state," he added.
Deepak Gullapalli, MD & CEO, Head Digital Works of A23, a premier skilled online gaming platform, said that the High Court has differentiated online games of skill vis-a-vis online gambling, which allows us to operate again. "Our platform is open for users in Karnataka again," he added.
With resumption of services in Karnataka, firms are looking at recovering losses that they witnessed due to ban of online gaming in October last year.
"There was a huge impact when the ban was announced. We saw 10-12 percent of our revenue impacted due to the ban and now we are hoping to regain that within a month's time," Gangar said.
He added that the platform is betting big on upcoming Indian Premier League (IPL) to not only recover losses but also to get back to their original numbers.
Baazi Games' Singh also said that southern India is a very potent market for the online gaming sector. "When our operations were halted in 2020, due to the state’s legislation, it did affect our business as it was the case for the whole industry."
He added that the resumption comes at an opportune moment as they are almost about to begin the National Poker Series 2022 for PokerBaazi.com.
"The (Karnataka HC) decision will surely elevate our estimates in terms of participation," said Singh.
Singh is also counting on IPL 2022. "It will be a major boost for our fantasy sports vertical BalleBaazi.com that will have a completely new set of users to reach out to. We are positive of seeing immediate effects of the development on our business," he added.
Sumit Jha, Founder, Fantasy Akhada noted that users from Karnataka were instrumental in the company's early growth. "Karnataka is home to some of the country's biggest sports fans, who are heavily invested in the city’s sports clubs, like RCB (Royal Challengers Bangalore), Bengaluru FC, and Bengaluru Bulls. For a very long time, Fantasy Sports fans have missed the first-hand experience of engaging with their teams while the rest of the country enjoyed the same. This announcement is a welcome move that will undoubtedly contribute to fantasy sports' next phase of growth,” he said.
Fantasy sports market in India grew from Rs 2,100 crore in 2019 to Rs 2,600 crore. Overall, online gaming industry grew 18 percent to Rs 7,700 crore in 2020.
On Karnataka HC's verdict on online gaming, Roland Landers, CEO of Skill gaming industry body All India Gaming Federation (AIGF) said that this gives confidence to the industry and will give other states a guideline that when game of skills are played with stakes, it is not same as gambling.
