Karnataka Government Proposals for Internet-Based Games Prohibition Spark Backlash
Online Gaming Ban in Karnataka: Impact, Challenges, and Future Prospects
Karnataka, one of India's tech hubs and start-up capitals, has taken a step towards regulating the online gaming sector by proposing a bill that bans all forms of online gambling, except lotteries and horse racing. The amendment to the Karnataka Police Act has stirred debate within the industry, legal experts, and gaming enthusiasts.
Tabled in the legislative assembly on September 17th, the Karnataka Police (Amendment) Bill, 2021 seeks to curb the risks associated with online gambling. The bill, however, has drawn criticism for its broad definition, which potentially includes skill-based games, such as rummy, chess, and fantasy sports.
Karnataka Home Minister, Araga Jnanendra, who tabled the bill, also included a ban on tokens valued in terms of money paid via electronic means and virtual currency. Jnanendra stated that the bill aims to ban all games involving profiting, betting, and stakes. He claimed that the state has data on the impact of online betting and iGaming during the pandemic and hopes to put an end to it.
Justice Vikramajit Sen, a former Judge of the Supreme Court and former Chief Justice of the Karnataka High Court, disagrees with the bill's stance on skill-based games. Sen notes that the Indian regulatory framework differentiates between games of skill and games of chance, and, while games of skill may involve an entry fee, they cannot be considered iGaming. Games of chance, on the other hand, are expressly prohibited by law.
The All India Gaming Federation (AIGF), representing the skill-based gaming sector, has urged the state government to promote responsible gaming and recognizes the AIGF's 'Self-regulation Framework.' AIGF has called the ban a setback for the state's reputation as a tech hub, given that India is the fifth-largest online gaming market worldwide, with Karnataka being a significant contributor.
PK Misra, President of Players' Association - AIGF and a former senior IAS, has expressed concerns about the impact the bill may have on the livelihoods of online skill-based gaming players. He claims that there is no clarity on this law, and players are afraid of having their livelihoods banned without prior conversation.
TheFuture of Online Gaming in India
The lack of central legislation regarding online gaming has led to differing interpretations of Supreme Court judgments among state governments. As a result, the future of online gaming remains uncertain.
Recently, the Madras High Court struck down a similar law passed by the Tamil Nadu state government that imposed a ban on online gaming. The court clarified that entry 34 of the State List under the Constitution, which allows states to decide independently on the subject, cannot be used to govern skill games. Entry 34 can ban/regulate games of chance, according to the court.
In conclusion, while the Karnataka Police (Amendment) Bill, 2021, aims to regulate online gambling, the legal quagmire surrounding the definition and classification of games of skill versus games of chance complicates the issue. The uncertainty raises questions about the future of the online gaming industry in India while leaving players and operators in a state of limbo.
- The implications of Karnataka's proposed ban on online gambling extend beyond traditional casinos, reaching skill-based games like rummy, chess, and fantasy sports, which are integrated with technology and a part of the fast-evolving sports culture.
- The ongoing debate about the Karnataka Police (Amendment) Bill, 2021, highlights the need for a clear understanding of the distinction between games of skill and games of chance, as the future of the burgeoning online gaming industry in India, particularly in tech-savvy hubs like Karnataka, hangs in the balance.
