Karnataka has become the latest state to impede fantasy sports and skill-based gaming after the law came into effect on Tuesday.

Revealed first by Reuters, the law boycotts online games including wagering and betting and “any act or gambling money, or in any case on the unknown consequence of an event including for a game of skill.”

The law was executed while growing worries that such fantasy sports and skill-based gaming platforms are habit-forming and can make monetary loss to the player. The law forces strong fines as well as a jail for the violators.
This boycott has projected a shroud on the maturing of the online fantasy sports sector, which has drawn in investment worth millions of dollars.

Sequoia Capital-financed Mobile Premier League, PayTM, and numerous other fantasy sports startups initiated blocking access to users in the previously mentioned state. MPL’s application, for instance, shows an error expressing, “Sorry! The law in your state doesn’t allow you to play Fantasy sports,” “Fantasy games are locked,” and “cash games are locked.”

To the uninitiated, MPL offered fantasy cricket and football match-ups, permitting players to bet real money dependent on the likelihood of winning or losing groups.

In a past report, an industry source in a discussion with Reuters uncovered how Karnataka was one of the many states that were significant for the fantasy sports-skill gaming space, including 20% of absolute business for organizations.

Roland Landers, the CEO of the All India Gaming Federation, said “The industry will challenge this in court and look for a legal resource.” Industry sources have added that gamers and game organizations are wanting to challenge the new Karnataka law in the court.

Credits: Indiatimes