Bill coming to clamp down on online betting and gaming

NT Corespondent

Bengaluru: The Karnataka government has announced plans to regulate and prohibit online betting and gaming activities in the state. To achieve this, a draft of the ‘Karnataka Police (Amendment) Bill – 2025’ has been pre- pared, which will be introduced in the upcoming legislative session. The proposed legislation aims to amend the existing ‘Karnataka Police Act, 1963’ to impose a complete ban on online betting and gambling.

Additionally, it seeks to establish the ‘Karnataka Online Gaming and Betting Control Authority,’ which will oversee licensed skill-based games and grant exemptions from the prohibition. This move is designed to regulate legitimate skill-based gaming activities while curbing illegal betting.

The draft bill specifies stringent penalties for those involved in illegal online betting. Individuals or organizations operating online platforms without approval or licensing from the authority could face imprisonment upto three years and fines up to ?1 lakh. Furthermore, those promoting, advertising, or assisting illegal betting activities through advertisements or other means could be imprisoned for up to six months and fined up to ?10,000.

The legislation explicitly bans all forms of online betting involving cash, tokens, virtual currencies, or digital money, including ‘luck-based games’ and other gambling activities. However, skill-based games that are licensed by the government or the authority, and meet specified conditions, will be exempt from this ban.

Online betting is defined as wagering on the outcome of any game, event, or activity conducted through internet, mobile apps, or other digital platforms, where results are determined randomly or by chance, involving digital currency or tokens. The bill proposes the appointment of a governing authority comprising experts in law, public administration, and information technology, with three members, including the chairman, to oversee the enforcement of regulations. Strict penalties are out- lined for unregistered online betting platforms.

The authority can order the suspension of such activities and impose fines up to ?5 lakh for repeated offenses. The authority will also have the power to seek warrants for searches, seizures, and investigations of suspected illegal betting operations, including servers and related records. If such illegal activities are found, operators can appeal to the courts within 30 days.

The bill also provides for the establishment of special courts for swift trial of betting-related offenses. The authority’s responsibilities include differentiating between skill-based and luck-based games based on court rulings and industry standards, monitoring illegal online betting activities, raising awareness about the risks of online gambling, and licensing legitimate skill-based gaming platforms.

It will coordinate with the Information Technology Department and the State Cyber Crime Division to develop technology for blocking illegal websites, mobile apps, and digital services involved in unauthorized betting.

Post-notification, all unregistered online betting platforms must be shut down, and financial transactions related to illegal betting activities are to be prohibited. The bill mandates the use of geo-fencing and IP blocking technologies to restrict access to illegal betting sites.