Karnataka is preparing to introduce a legal framework to ban online gambling while allowing skill-based games, following the model implemented by Chhattisgarh. This move comes as the gaming industry in India continues to grow rapidly, and the demand for clear regulations becomes increasingly important.
Karnataka Plans a Balanced Approach
Karnataka IT and BT Minister Priyank Kharge confirmed that the state is working on a new regulatory framework. The aim is to protect people from fraudulent gaming sites while promoting skill-based gaming and innovation. Discussions are ongoing with the Law and Home departments to carefully define the difference between games of chance and games of skill.
Learning from Chhattisgarh
Chhattisgarh introduced its online gambling law in March 2023. This law bans games of chance while allowing skill-based games to operate legally. Karnataka is now considering adopting a similar structure, with a focus on creating an environment that supports the gaming industry while protecting consumers.
Previous Gambling Ban and Court Challenges
In 2021, Karnataka passed a bill banning all forms of online gambling, including skill-based games. However, in 2022, the Karnataka High Court struck down most of the law, calling it unconstitutional. The state appealed to the Supreme Court, and the case remains pending. The new approach aims to address past legal issues and support the industry without compromising consumer safety.
Need for Central Regulation
Karnataka’s move comes as India still lacks a uniform central regulation for online gaming. The Ministry of Electronics and Information Technology proposed self-regulatory bodies in 2023 but later dropped the plan.
Without central rules, gaming companies face different regulations in every state. Tamil Nadu, for example, has set its own rules for real-money gaming, which are now being challenged in court. Industry experts believe central regulation is essential to deal with illegal offshore operators and ensure consistent rules across the country.
Gaming Industry Growth
India’s gaming industry earned 3.8 billion dollars in revenue in the financial year 2024, with real-money gaming contributing 2.4 billion dollars. The industry is expected to grow to 9.2 billion dollars by 2029, making clear and fair regulations more critical than ever.
