Karnataka: Online gaming industry lauds HC ruling quashing new anti-gambling law

Skill-based online gaming firms like Dream11, Mobile Premier League and Games24x7 breathed a sigh of relief after the Karnataka High Court quashed the state's online gambling law as unconstitutional. Gaming firms were forced to shut down operations in October last year since amendments to the Karnataka Police Amendment Act in 2021 prohibited certain online gaming activities in the state. The state government had prohibited and criminalised playing of games of skill by risking money or otherwise. The petitioners, including All India Gaming Federation, claimed that games such as poker, chess, rummy, fantasy sports are all games of skill and various court orders have categorically differentiated games of chance and games of skill.

"India is the fifth largest online gaming market globally and skill-based gaming, a sunrise sector, is giving birth to an increasing number of unicorns within the country, especially Karnataka. The sector has been a strong financial contributor to the Indian economy even during an unprecedented period of slowdown and is further expected to generate revenues in excess of $ 3 billion by 2025. As the apex industry body for online skill gaming, AIGF welcomes the judgment passed by the court that strikes down the Law banning Online Games," Roland Landers, CEO, All India Gaming Federation, said. He adds that coming in succession of the positive judgments for online skill gaming by the Kerala and Madras HC in 2021, this is a step in the right direction to grow the burgeoning gaming industry.

The industry said that Finance Minister Nirmala Sitharaman's announcement of AVGC (Animation, Visual Effects, Gaming and Comic) task force in the Budget 2022 will give a major boost to the game development sector. "We look forward to bringing in massive employment, through direct and indirect jobs and becoming a meaningful contributor. AIGF and the skill games council of domain experts will be happy to assist various stakeholders in playing a consultative role in the formation of a regulatory framework for the industry," Landers adds.

Similarly, Dinker Vashisht, vice president, corporate and regulatory affairs, Games24x7, is of the opinion that the present Karnataka HC ruling is yet another validation of what the online skill gaming industry has always maintained that it is legitimate business activity protected under the Constitution of India. 

"This is the third High Court judgment, Tamil Nadu and Kerala verdicts, being the earlier ones, in the last seven months that has held a ban on skill gaming as Ultra Vires the constitution. We hope that these judgments can nudge state governments to frame progressive policy and regulatory structure for this sunrise sector," he said.

The industry feels that the judgement is in line with the initiatives proposed in the Union Budget to set up an AVGC task force and this will further help in giving a much-needed push to gaming companies and developers.  

"We are excited to hear the judgment of the Hon'ble Court enabling us to resume business in Karnataka and provide our gaming platform to our users. Moreover, the move will provide immense opportunity for the employment of youth by building internal capabilities to cater to domestic and international demands," Ankur Singh, CEO & founder of Witzeal Technologies said.

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