The gaming industry, reeling under the prohibition on money-based online gaming in Karnataka that has happened for the current week, is set to take a lawful response to challenge the move.

Associations like the All India Gaming Federation and The Online Rummy Federation are at present assessing legal challenges including moving toward the Karnataka High Court, delegates told CNBC-TV18.

This comes even as a few gaming platforms like Mobile Premier League and Games 24×7 have closed down their money-based games in the state for users.

“As the pinnacle industry body, we have told our member organizations to block Karnataka as per the law. Our legitimate online skill gaming organizations will be affected. Several pro gamer’s occupations will likewise be contrarily affected. The business will challenge this in court and look for a lawful response,” said Roland Landers, CEO of the All India Gaming Federation (AIGF).

“We should recollect that the Madras High Court had as of late struck down a similar act that attempted to stop online skill gaming in the state,” Landers said.

Associations have referred to ongoing good decisions in Madras High Court and Kerala High Court against similar boycotts by the state governments.

Karnataka announced the Karnataka Police (Amendment) Act, 2021 on October 5, which is intended to boycott betting or wagering regarding any game of chance. Nonetheless, the notice of a ‘game of skill’ in the notification is the thing that has caused worry in the industry.

As per the notice, the boycott applies to online games, including all types of betting or wagering, including “in the forms of tokens valued in terms of money paid previously or after issue of it, or electronic means and virtual currency, electronic transfer of funds regarding any game of chance.”

The notification additionally refers to “any act or risking money on the unknown result of an event including for a game of skill’.

As per AIGF, Karnataka constitutes somewhere around 10% of the revenue for the gaming sector in the country.

Karnataka is the most recent in the rundown of states which have comparable boycotts set up, including Telangana, Andhra Pradesh, and Odisha.

Credits: CNBC Tv18