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India state, Karnataka Proposed to ban Online Gaming

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India state, Karnataka Proposed to ban Online Gaming

A few weeks ago, the Karnataka State proposed a ban on online games involving betting and wagering, emphasising on “any act or risking money, or otherwise on the unknown result of an event including a game of skill”.

The state government said the bill will help keep youth from rural areas from being idle in cities and towns as they tend to become habitual gamblers.

Karnataka’s move to ban games involving skills could prove detrimental to the revenues of large gaming platforms such as Dream11. This is in contrast to existing gambling laws in India, such as the ones in Telangana and Andhra Pradesh, that are dependent on chance, Puneet Bhasin, a Mumbai-based lawyer, said.

India categorises games into two main parts — games of skill and games of chance. While games of skill require players to possess analytical and decision-making capabilities, games of chance are based purely on luck.

Karnataka is home to 91 gaming firms that collectively employ about 4000 people, according to data from Startup Business Academy.

According to Landers, expanding the ban to the legitimate industry that has created many unicorns and is going to be a significant contributor to the Indian economy is not justified.

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