Big relief to gaming companies in Karnataka, High Court calls the law of online gambling unconstitutional

The Karnataka High Court on Monday declared the state government’s recently introduced online gambling law as unconstitutional. This has brought a big relief to the skill based gaming companies, which had to shut down their operations in the state.

online gaming

Karnataka High Court (Karnataka HC) On Monday, the state government’s recent online gambling ,Online Gambling, The law has been declared unconstitutional. With this skill based gaming companies (Gaming Companies) There has been a big relief to those who had to shut down their work in the state. Fantasy sports after this decision (Fantasy Sports) And gaming companies like Dream11, Mobile Premier League, Games 24×7 (Rummy Circle, My11 Circle) and S-2 will be able to make a comeback in the state. They shut down their operations in October last year. The Karnataka High Court had reserved its decision on 22 December. Earlier, he had heard several petitioners, including industry associations, gaming companies and individuals, who challenged the constitutional recognition of the state’s new online gambling law, which came into force on October 5.

All India Gaming Federation (AIGF) associated with the skill gaming industry, Federation of Indian Fantasy Sports (FIFS) associated with the self-regulatory fantasy sports industry, Real-money gaming companies Mobile Premier League (MPL), Games 24×7, A23(Ace2Three) ), Junglee Games, Games Craft and Pacific Games are among dozens of petitioners who moved the High Court against the law.

Many petitions were filed in the High Court

These petitions challenged the constitutional validity of amendments made to the Karnataka Police (Amendment) Act, which had banned all forms of online gambling involving the transfer of money.

The case was initially heard by a single judge bench of Justice Krishna S Dixit and thereafter the case was transferred to a division bench comprising Dixit and Chief Justice Ritu Raj Awasthi. On 22 December, the bench had told the parties that they can file written submissions for any further arguments. The petition was initially listed for grant of interim relief, but was later heard for the last caveat.

The state government brought the amendment because a public interest litigation was filed in the High Court, demanding a ban on online gambling. In this, the distinction between game of skill and game of chance was removed, thereby bringing skill-based gaming startups under its purview.

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