After HC gives breather, online gamers rejoice

NT Correspondent

The verdict of the Karnataka High Court striking down the Karnataka Police (Amendment) Act 2021 which banned online gaming (with stakes) and betting in the state, has come as a major relief for online gaming units like Dream 11, Games24x7, MPL and others, which were suspended since October last year.

The verdict was pronounced by a division bench of Chief Justice Ritu Raj Awasthi and Justice Krishna S Dixit. The bench clarified that the court was not striking down the entire Act, adding that it will not interfere if the government brings in a new law that is congruent with the Indian Constitution.

Welcoming the move, Roland Landers, CEO, All India Gaming Federation, stated that 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 in Karnataka. “The sector has been a strong financial contributor to the Indian economy even during the unprecedented slowdown and is further expected to generate revenues in excess of $3 billion by 2025,” Landers said.

India does not have a national framework for the regulation of online gaming which has led to state governments devising wildly divergent and stringent laws. The verdict is notable as it will set a precedent for gaming regulations in the country. It also means that fantasy sports apps and real money gaming platforms can restart their operations in the state.

Puneet Singh, Co-founder and COO, Baazi Games, called the judgement a great day for the real money gaming (RMG) industry.