The Karnataka High Court, on Monday February 14, quashed a recent law enacted by the state to ban online gambling, and stated that it was unconstitutional. This move comes as a huge relief to all the skill-based gaming platforms that had to close operations in Karnataka last year.
The high court had in December reserved its order after conducting a series of hearings from a host of petitioners who challenged the constitutional validity of Karnataka’s new online gambling law that was implemented on October 5 last year. The petitioners included gaming industry body All India Gaming Federation (AIGF), self-regulatory fantasy sports industry body Federation of Indian Fantasy Sports (FIFS), real-money gaming firms Mobile Premier League (MPL), Games24x7, A23(Ace2Three), Junglee Games, Gameskraft and Pacific Games among others.
The HC’s judgement is likely to affect gaming firms like Dream11, Mobile Premier League, Games24x7 (RummyCircle, My11Circle), and Ace2Three who will be eligible to make a comeback in the state.
The ‘Karnataka Police (Amendment) Bill, 2021’ was tabled in the assembly by Home Minister Araga Jnanendra.
The bill to amend the Karnataka Police Act of 1963 states “games means and includes online games, involving all forms of wagering or betting, including in the form of tokens valued in terms of the money paid before or after the issue of it, or electronic means and virtual currency, electronic transfer of funds in connection with any game of chance.”
The law, after being passed, was challenged on grounds of its constitutional validity. It was initially heard by a single-judge bench and later on transferred to a division bench comprising Dixit and Chief Justice Ritu Raj Awasthi. The bench on December 22 told the parties that they could file written submission
Initially, the plea was listed for interim relief but later was heard for final arguments amid a consensus among counsel appearing for the petitioners as well as the state’s Advocate General appearing for the respondents. This was done as the arguments already were lengthy enough.
The state government had in July informed the High Court, hearing a petition seeking a ban on all forms of online betting and gambling, that it had drafted a Bill.
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