The Karnataka high court on Wednesday is relied upon to discard the petitions recorded against the state’s new law, which tries to direct all formats of online gaming. Six organizations and industry bodies have moved the high court against the Karnataka Police (Amendment) Compliance Act, 2021, which makes all types of betting, including online, a cognizable and non-bailable offense

The petitioners are the All Indian Gaming Federation (AIGF), Mobile Premier League, Games24x7, Gameskraft, Head Digital Works Private Ltd, and Junglee Games.

The case will be heard by a bench of Chief Justice Ritu Raj Awasthi and Justice Krishna S Dixit.

What is the issue?

Various organizations, which hold online fantasy sports and rummy, contend that the games which require skills have been clubbed alongside games of chance in the meaning of gaming.

Their contentions have been effectively acknowledged by the high courts in Tamil Nadu and Kerala, where the organizations referred to a law laid down by the Supreme Court in 1957 that competitive games of skill are business exercises secured under the sub-sections of Article 19 of the Constitution.

When was the law passed by Karnataka?

The Karnataka Police (Amendment) Compliance Act, 2021, was passed by the state governing body in September this year and informed on October 5.

Which different states have restricted online gaming?

Telangana, Andhra Pradesh, Assam, Odisha, Nagaland, and Sikkim have restricted online rummy. But, the Madras high court, in August this year, quashed the state government’s prohibition on online rummy, holding that it requires skills and can’t be considered as betting.

The Kerala high court as well, in September, struck down a revision that forced a restriction on online rummy.

How huge is the online gaming industry?

As per the All-India Gaming Federation Report, the sector contracted $1 billion in 2020. The report was ready alongside Ernst and Young.

It is relied upon to reach $2 billion by 2023, the report additionally said.

Worries around online gaming

Recently, Rajya Sabha member and senior Bharatiya Janata Party (BJP) pioneer Sushil Kumar Modi requested on the floor of the House that the public authority ought manage the online gaming industry and force a uniform tax on it.

Raising the issue during the Zero Hour, Modi said that these online games have now given an approach to betting and wagering.

During the pre-Covid period, the BJP pioneer said, the weekly time spent on mobile gaming was 2.5 hours, while 11% of total smartphone time was spent on gaming. In any case, during the lockdown, the gaming time has expanded to four hours.

Credits: Hindustan Times