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Exclusive: What Karnataka’s gambling bill says about online gaming and financial risks

While the bill doesn’t specifically detail what’s prohibited or allowed, it does make room for betting on one sport.

Karnataka's online gambling bill outlaws betting and gambling even when games of skill are concerned, a draft of the Karnataka Police (Amendment) Bill, 2021 obtained by MediaNama reveals. The draft hasn't been made available publicly as of yet. The bill is being amended to "include the use of cyberspace including computer resources or any communication [device] as defined in Information Technology Act, 2000 in the process of gaming to curb the menace of gaming through internet [and] mobile app[s]," the bill's statement of objects and reasons said. The Karnataka High Court has been urging the state government to come up with a stand on online gambling, and this bill is the culmination of that process. However, it may be difficult for the state to stand behind it legally, due to its inclusion of all sorts of wagering, including games of skill, that courts have held can't be prohibited outright. This also comes at a time when the union government told the Chief Minister of Andhra Pradesh that it is exploring a "uniform approach" to regulating online betting and gambling. What the bill says The bill does not contain any examples of prohibited or allowed games, except for a carve-out for horse-race betting. Revised definition of gaming: The Police Act Amendment expands the definition of "gaming" to include online games. The bill says that "gaming means and includes online games, involving all forms of wagering, including [...] electronic means and virtual currency, electronic transfer of funds in connection with any game of…

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I cover the digital content ecosystem and telecom for MediaNama.

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