Karnataka High Court has not provided any interim order in the continuous hearing of six petitions challenging the State’s new enemy of betting law.

The following hearing on these petitions will presently occur after Diwali in November 2021. Six petitions have been filed by gaming organizations and industry bodies including the All Indian Gaming Federation (AIGF), Mobile Premier League, Games24x7, Gameskraft, Head Digital Works Private Ltd, and Junglee Games.

The Karnataka Police (Amendment) Compliance Act, 2021, which was notified on October 5, prohibited all organizations of online gaming that include an entry fee or registration charge. The law read, “gaming implies and includes online games, including all types of betting or wagering, including the type of tokens valued as far as money paid previously or after issue of it, or electronic means and virtual currency, electronic transfer of funds regarding any game of chance, yet does exclude a lottery or betting or wagering on horse-race run on any racecourse inside or outside the State when such betting or wagering happens.”

In another court hearing on the petition filed by Dream11 c0-founders Bhavit Sheth and Harsh Jain, the court has allowed assurance to both co-founders until the following date of the court hearing (November 9). The co-founders are challenging an FIR against them, for disregarding the State’s betting boycott by proceeding with the operations of Dream11 in Karnataka after the warning of the new law.

Following different State guidelines, online games working in formats like online fantasy sports (OFS) and online rummy have needed to prove skill predominance in their particular formats. Previously, States like Telangana, Andhra Pradesh, Assam, Odisha, Nagaland, and Sikkim have put a prohibition on online rummy. Nonetheless, a comparable boycott didn’t pass in Tamil Nadu where the High Court has held that online rummy includes high strength of skills and in this way can’t be considered as betting, in any event, when played with stakes.

In September, the Kerala High Court had likewise subdued the State government’s restriction on online rummy played for stakes by including it for the Kerala Gaming Act. 1960.

As indicated by EY-All India Gaming Federation (AIGF) report, ‘Online gaming in India-The GST conundrum’, the Indian online gaming sector reached about $1 billion out of 2020 and is relied upon to reach $2 billion by 2023 as far as rake expenses procured.

Credits: Business Line