Online gambling: Karnataka will soon have foolproof law to end illegal betting, says home minister

The Karnataka government’s proposed law to regulate online gaming will clearly distinguish between games of skill and games of chance and will be framed to withstand any judicial scrutiny, home minister G Parameshwara told the Assembly on Tuesday.

At the same time, Karnataka would also pursue the case in the Supreme Court to have the 2021 amendments to the Karnataka Police Act restored and end the menace of betting through unlawful gaming apps, he said.

An expert group led by DGP Pranab Mohanty is working on a draft law to regulate the sector, and the same was expected next month. The government would take the recommendations forward, the home minister said.


The minister’s reply came in response to a question from Rajajinagar MLA S Suresh Kumar (BJP), who said there was a near vacuum in regulations that allowed illegal gaming apps to operate at will and ruin the lives of the youth and impoverish many families. The online gaming addiction has also led to people ending their lives in hopelessness and desperation, he said.

The home minister said he agreed with Kumar’s views, and the government was serious about dealing with the burning issue. The All-India Gaming Federation (AIGF) was also on the same page with the government on the subject and backed the latter’s initiatives.

State laws not enough

AIGF CEO Roland Landers had, in a recent statement, backed Karnataka’s initiatives but called for a national regulatory framework, arguing that the state-level laws alone may not be “sufficient to curb the growing menace of offshore gambling platforms."

The previous BJP regime had amended the Karnataka Police (Amendment) Act, 2000, adding comprehensive sections related to online gaming. But the high court had, on February 14, 2022, struck down the amendments on a challenge mounted by the online gaming companies. The state government moved the apex court in 2023, challenging the judgment and is awaiting its verdict.

Parameshwara admitted there had been a delay in pursuing the case in the apex court, but assured that the government will now move in all seriousness.

In a recent chat with ET, IT/BT minister Priyank Kharge said the government will place the Mohanty committee report before the Cabinet after having it vetted by the home & law departments. The proposed legislation intended to curb online games of chance while supporting innovation and sustainable growth of the skill-based gaming industry, he said.

Kharge had earlier said that the legitimate online skill-based gaming industry in India was a sunrise sector worth $4 billion, contributing Rs 12,000 crore in taxes and adding over 1.5 lakh jobs. Karnataka alone accounted for a fourth of the market, contributing Rs 1,350 crore in annual tax contributions.

The GST Council, at its meeting on July 11, 2023, decided to tax online gaming, casinos and race courses at 28% on the full face value of bets.