70% Respondents Believe Banning Online Gaming Will Have Negative Impact on IT & Start-Ups

According to a research done by Startup Business Academy among India's startup community, Bangalore's image as a startup destination would be harmed by the recent issue over Karnataka's ban on online gambling.

A survey of 650+ respondents was done by Startup Business Academy, an organization dedicated to assisting startup entrepreneurs in swiftly scaling up. The vast majority of those polled believe that not only will the ban harm Bangalore's reputation, but it will also have a knock-on effect on other start-up and IT sectors. Around 70% of respondents feel that a ban on online gaming will have a significant negative influence on other areas of the IT industry as well as start-ups, which will suffer in the long run.

A whopping 80% of respondents also feel that if gaming start-ups leave Bengaluru for other start-up locations in India due to a lack of governmental assistance, it would have a significant negative impact on the image of Bengaluru and Karnataka as a start-up destination.

Controversial bill in Karnataka will impact all gaming formats

This disputed bill in Karnataka would have ramifications for all gaming forms, including strategy games and esports. While the bill seeks to prohibit internet gambling, it has effectively prohibited all forms of gambling, including skill games. Currently, Karnataka is home to more than 91 game firms and developers, employing around 4,000 people. The Bill will have a severe impact on these companies, in terms of revenue and job losses, and will stifle growth in this sector, not to mention the cascading effect on the entire start-up ecosystem and IT sector in the region, as gaming is now the number one magnet for attracting global investments in India.

Not only policy, but 69 percent of respondents strongly believe that Bengaluru will eventually lose its attractiveness for start-ups due to a slew of confounding factors such as infrastructure issues, traffic, a lack of public transportation, and a lack of clear startup-friendly state government policy. Around 31% of respondents believe that if the trend of overregulation of strong growth and investment magnets like gambling continues, the state's attractiveness would suffer. Furthermore, 33% of respondents feel that other cities, such as Delhi NCR, Pune, Chennai, and Hyderabad, would gain from stronger regulations and environments for high-risk start-up entrepreneurs and investors.

Mr. Neeraj Kapoor said Bengaluru is India’s flag bearer for IT development and start-ups

According to Mr. Neeraj Kapoor, Founder & CEO, Startup Business Academy, Karnataka, headed by the city of Bengaluru, has been India's flag bearer as a worldwide centre for IT development and start-ups on the basis of a thriving private business driven by young, enthusiastic entrepreneurs. Recent changes challenge Karnataka's pole position in terms of friendliness and preparedness to drive the next stage of growth from IT and associated services in comparison to other Indian states.

5% respondents believe that there is absolutely no threat

A significant proportion of respondents (33%) attribute Bengaluru's development to the Karnataka government's progressive policies. Approximately 5% of respondents feel there is no danger to Benguluru's status as an international start-up centre, while another 6% believe there is a little threat.

Conclusion

To summarize, in order to stay ahead of the curve, Karnataka must lead the way by enacting progressive policies such as ‘Right Regulation' and the creation of IT laws based on science and technology. Online gaming is one of the world's fastest growing IT development areas today, and the way things are going, many Indian firms will go on to dominate the global gaming industry if properly supported.

READ MORE GAMING NEWS HERE:

Delta Corp to Raise $30-40 Million for Online Gaming Business

Manish Adnani of Delta Corp Joins as New PokerBaazi LIVE Head

Bihar Barber Becomes a Millionaire after Hitting Dream11 Jackpot