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Karnataka Home Minister Tables Bill to Ban Online Gaming

The Karnataka Home Minister Tables Bill, introduced by Home Minister Araga Jnanendra, intends to ‘ban online games including all types of wagering or betting, including tokens valued in terms of money paid before or after the release of it.' It seeks to prohibit the use of electronic methods and virtual currency, as well as the electronic transfer of cash in conjunction with any game of chance.'

By Amit KrPublished 3 years ago 4 min read
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Photo by Aidan Howe on Unsplash

On September 17, the Karnataka Police (Amendment) Bill, 2021, was introduced in the Legislative Assembly to prohibit online gaming or betting by modifying the Karnataka Police Act of 1963, with a maximum prison term of three years and a fine of up to Rs 1 lakh.

The Bill, introduced by Home Minister Araga Jnanendra, intends to ‘ban online games including all types of wagering or betting, including tokens valued in terms of money paid before or after the release of it.' It seeks to prohibit the use of electronic methods and virtual currency, as well as the electronic transfer of cash in conjunction with any game of chance.'

The majority of India's unicorns are headquartered in Bengaluru, which offers progressive policies for start-ups, regulatory stability, and a youthful and competent workforce. However, the Karnataka government may jeopardize Bangalore's reputation, as well as the country's entire gaming ecosystem, by enacting legislation outlawing online real money skill gambling in its state.

The Supreme Court's legal precedent over the last 60 years has been quite clear that games of skill are not gambling, and that selling games of skill are a lawful enterprise protected by the Indian Constitution. Various high courts, including the Karnataka High Court, have reaffirmed this numerous times.

Despite clear legislation and court rulings, many governments, including Tamil Nadu, have attempted to outlaw skill-based internet gaming. The Tamil Nadu High Court issued a comprehensive decision last month, ruling that the Tamil Nadu statute that outlawed online skill games was unconstitutional. The Court stressed that any restrictions on skill games, whether online or offline, must be restricted, and the state should strive to regulate rather than outright prohibit them.

The Court came down heavily on the State government

The Court also chastised the State administration for enacting the law as a populist move in the run-up to state elections, rather than in accordance with existing law. The Court further ruled that Entry 34 of the State List under the Constitution, from which the Karnataka amendment derives its authority, cannot be used to control games of skill, but may only be used to prohibit or regulate games of chance.

Skill-based gaming cannot be equated to gambling, and outright prohibition is not a solution. In accordance with the legislation, the Karnataka Police Act outlawed games of chance. However, under the guise of putting internet gambling within its purview, the government is now attempting to sneak in games of skill.

The proposed measure also forbids online chess, archery, online quiz games, other Indian games, and any digital reproductions of traditional sports, including those featured in the Asian Games and Olympic Virtual Series. With the Asian Games stating that 24 medals would be awarded for eSports at the following year's edition, this rule may be highly troublesome for professional gaming players, since it could damage their careers and revenue.

With significant worries emerging over the Karnataka Government's plan to prohibit online gaming, PK Misra, President Players' Association – AIGF and former senior IAS, stated that the action will have an impact on the online skill-based gaming sector, effectively ending players' right to make a living. There is no clarity on the extent of this rule, and we are always concerned that the players' livelihoods might be prohibited at any time without prior notice or conversation.

Mr. Misra aims at ensuring inclusive growth

Mr. Misra has held significant roles in Indian bureaucracy and is spearheading the activities of the Players' Association at AIGF. He intends to ensure that growth is inclusive and monitored on a regular basis for the participants and the industry by providing his proven leadership and bringing to the table his decades of expertise and a deep grasp of the industry, the AIGF, and its self-regulatory views.

AIGF CEO Roland Landers recently stated that the entire gaming industry could be valued at around Rs 9000 crore as of today, with subscription-led (Real Money Gaming) or transactional-led online skill gaming accounting for close to Rs 7000 crore and the in-app purchase market accounting for the remaining 2000 crores.

The AIGF, as the oldest online skill gaming industry association, has been at the forefront of guaranteeing worldwide best practices for its stakeholders through the self-regulation skill games charter, which includes all elements of the online gaming business and is monitored by an advisory board of specialists. The AIGF and other professional players strongly hope that the Karnataka government will listen to their concerns and guarantee that skill gaming is not impacted by this law.

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About the Creator

Amit Kr

Hi I am Amit Kr from India. I love writing on various topics. I love nature, music, pets and weekend traveling.

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