Many online gaming firms have resumed services in Karnataka after the state's High Court, on February 14, struck down the provisions of the Karnataka Police Act that deals with online gambling as unconstitutional.
On October 5 last year, Karnataka government had notified the online gambling law with immediate effect, which was followed by online gaming companies shutting down operations in the state.
Gaming platforms including PlayerzPot, A23, Fantasy Akhada and Baazi Games told Moneycontrol that they have resumed operations in Karnataka.
Baazi Games' Singh also said that southern India is a very potent market for the online gaming sector. "When our operations were halted in 2020, due to the state’s legislation, it did affect our business as it was the case for the whole industry."
He added that the resumption comes at an opportune moment as they are almost about to begin the National Poker Series 2022 for PokerBaazi.com.
"The (Karnataka HC) decision will surely elevate our estimates in terms of participation," said Singh.
Singh is also counting on IPL 2022. "It will be a major boost for our fantasy sports vertical BalleBaazi.com that will have a completely new set of users to reach out to. We are positive of seeing immediate effects of the development on our business," he added.
Sumit Jha, Founder, Fantasy Akhada noted that users from Karnataka were instrumental in the company's early growth. "Karnataka is home to some of the country's biggest sports fans, who are heavily invested in the city’s sports clubs, like RCB (Royal Challengers Bangalore), Bengaluru FC, and Bengaluru Bulls. For a very long time, Fantasy Sports fans have missed the first-hand experience of engaging with their teams while the rest of the country enjoyed the same. This announcement is a welcome move that will undoubtedly contribute to fantasy sports' next phase of growth,” he said.
Fantasy sports market in India grew from Rs 2,100 crore in 2019 to Rs 2,600 crore. Overall, online gaming industry grew 18 percent to Rs 7,700 crore in 2020.
On Karnataka HC's verdict on online gaming, Roland Landers, CEO of Skill gaming industry body All India Gaming Federation (AIGF) said that this gives confidence to the industry and will give other states a guideline that when game of skills are played with stakes, it is not same as gambling.
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