Karnataka HC strikes down online gambling law, terms it ‘Unconstitutional’

New Delhi: The Karnataka High Court on Monday struck down sections of the Karnataka Police (Amendment) Act, 2021, that restrict and criminalise betting on and playing skill games, including those played online, as unconstitutional.

"The writ petitions have been granted. The restrictions are unconstitutional and must be overturned," according to a division bench led by Chief Justice Ritu Raj Awasthi and Justice Krishna S Dixit.

While stating that the court was not overturning the entire Act, the bench also stated that it would not interfere if the state passed a new law in accordance with the Constitution.

The Karnataka Assembly enacted a bill to alter the Karnataka Police Act, 1963, making all kinds of gambling, including online gambling, a cognizable and non-bailable offence on September 21 of last year. Since the new law took effect, some online gaming companies have geo-locked their applications and websites in Karnataka to avoid facing legal action if clients use them.

Under the new law, the creators of the online fantasy sports platform Dream 11 were also charged with operating a gaming house.

Mitesh Gangar, Co-Founder, PlayerzPot, "It is a major relief by Karnataka High Court and will pave the way for all brands to start its operations in Karnataka. The state contributed to a sizable chunk of user base and revenue for us and this ban uplift will allow our users to come back to skill-based gaming. Gaming is growing day by day in India and such positive impact decisions will help the industry to grow at an accelerated rate. We believe that in drafting any regulations the stakeholder of the business should get a fair opportunity to put forward their point to avoid any similar bans ahead. The future of gaming in India is bright and this ruling is in favour of the anticipated growth trends of the industry. Lastly, we are keeping our firm footing for being a responsible gaming and will endeavor to maintain it."