In a move that has seriously concerned Indian startups, the Karnataka Assembly, on September 21, passed the Karnataka Police (Amendment) Bill restricting online betting of wagering in the state. It was told and came into power on October 5.

“The Bill is expected to control gaming through the internet or mobile applications. It likewise improves the punishment for gaming for the deliberate conduct of citizens and to wean them away from the bad habit of betting,” said Karnataka Law and Parliamentary Affairs Minister JC Madhuswamy.

The most recent amendment, which was tabled in the Legislative Assembly on September 17, shows up behind public interest litigation (PIL) filed in the Karnataka High Court requiring the denial of online betting.

What are gaming organizations’ bones of dispute?

Yet, what makes it tricky is the detailed obscuring of the lines that separate a game of chance from a game of skill. Under the amendment, violations might draw a jail term of as long as three years and a penalty of up to Rs 1 lakh.

Karnataka isn’t the first to make this sort of a stride. Over the last couple of months and a long time, the online gaming industry has been in the eye of the state governments of Andhra Pradesh, Telangana, and Tamil Nadu. Andhra Pradesh has effectively prohibited all online betting joining Assam and Odisha. In Kerala, games like online rummy have been restricted. Nonetheless, in November last year, an ordinance restricting online betting in Tamil Nadu was struck down in the Madras High Court.

The central issue to note with Karnataka’s most recent amendment however is that it seems to boycott any sort of online game that includes the exchange of money. All things considered, clearness is now being looked for by self-regulatory bodies around what will happen to the booming online gaming industry.

Responding to the entry of the Bill, the Federation of Indian Fantasy Sports (FIFS) said, “We request the Karnataka government to eliminate any ambiguity or uncertainty in the bill to guarantee continuity and development of the fantasy sports sector in the State. FIFS and its members emphatically accept that convictions are essential to law and order and henceforth the bill needs to give sureness and clarity to organizations, the investor community just as buyers for the orderly growth and development of the business.” Among FIFS members, it bears referencing, are well-known organizations like MPL.

Comparable proclamations have been given by industry bodies like CAIT and IAMAI, asking the Karnataka government to re-examine the boycott. “By including games of skill for the ambit of the bill, it has not just conflicted with set up the law by the Honourable Supreme Court and Karnataka High Court yet compromises the flourishing Indian gaming start-up sector,” said Praveen Khandelwal, secretary-general of CAIT in a letter directed at the Karnataka chief minister.

What did the K’taka High Court say?

Responding to petitions held up by Mobile Premier League (MPL), Games24x7, Ace2Three, Junglee Games, Gameskfraft, and AIGF challenging the constitutional validity of the Act, the Karnataka High Court directed the state government not to make any arrest under the new law until the case was heard. A single-judge bench of Justice Krishna S Dixit likewise consented to Senior Advocate Arvind Datar (addressing the All India Gaming Federation) to bunch the six petitions together. The court will continue hearing the entries for interval help on Thursday.

Since the law became effective, a few gaming organizations like Mobile Premier League (MPL), Games 24×7, Ace2Three, and Rummy Culture started geo-locking their applications making it impossible for those in Karnataka to access them.

Credits: ETNOWNEWS.COM