Karnataka discusses legal framework to regulate online gaming

Karnataka IT-BT minister Priyank Kharge said he held a detailed meeting with Home Minister G Parameshwara, senior government officials, members of online gaming federations, and industry experts to deliberate on the proposed framework.

The Karnataka government has held a high-level meeting to discuss a legal framework for regulating online gaming.

"The intent of this legislation is to curb online gambling, betting, and games of chance, and protect consumers from fraud while supporting innovation and the sustainable growth of the skill-based gaming industry," Karnataka’s IT-BT Minister Priyank Kharge said on April 8.

As reported by Moneycontrol recently, Karnataka is set to introduce a legal framework to ban gambling while permitting skill-based games following a model similar to that of Chhattisgarh.

Kharge said he held a detailed meeting with home minister G Parameshwara, senior government officials, members of online gaming federations, and industry experts to discuss the proposed framework.

“The legitimate online skill-based gaming industry in India is a sunrise sector worth $4 billion, contributing Rs 12,000 crore in taxes and creating over 1.5 lakh jobs. Karnataka alone accounts for 25 percent of the market and contributes Rs 1,350 crore annually in taxes, making it a key hub,” Kharge said.

Also read: Karnataka to introduce Chhattisgarh-like law to ban gambling, allow skill-based games: Priyank Kharge

He also raised concerns over the growing underground market of offshore gambling and illegal betting. "Alongside the legitimate sector, there's a parallel underground market that’s expanding rapidly, posing risks such as predatory money collection practices, dubious shell companies, financial fraud, data breaches, and cybercrimes," the minister said.

Kharge recently held discussions with representatives of the E-Gaming Federation (EGF), the All India Gaming Federation (AIGF), and the Federation of Indian Fantasy Sports (FIFS) regarding their collaborative ‘Code of Ethics’ for the industry.

“This code, adopted by member companies, aims to promote user safety and responsible gaming practices across India’s skill-based real-money gaming sector, safeguarding the interests of over 50 crore Indian gamers,” he said.

The Karnataka government is committed to introducing a comprehensive bill that would protect public interests and uphold ethical standards within the industry. The initiative underscores “our dedication to fostering a secure and responsible gaming environment for all stakeholders", Kharge said.

Also read: Karnataka HC strikes down majority of the state's online gambling law as unconstitutional