Karnataka to table Bill banning online gambling, regulating skill based RMG
As first reported by Storyboard18, the legislation seeks to draw a clear legal distinction between gambling and games of skill—a long-debated topic in India’s rapidly growing real-money gaming (RMG) industry.
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In a renewed push to tackle the surge in online gambling, the Karnataka government is preparing to introduce a comprehensive new legislation during the upcoming session of the State Legislature. The proposed bill aims to outlaw all forms of online games of chance while creating a regulated licensing framework for skill-based games.
As first reported by Storyboard18, the legislation seeks to draw a clear legal distinction between gambling and games of skill—a long-debated topic in India’s rapidly growing real-money gaming (RMG) industry. However, ambiguity remains around how the state intends to handle offshore betting platforms, whose presence and influence have grown significantly over the past year.
The bill is expected to include a range of consumer protection measures, including mandatory age-gating, grievance redressal systems, and player support services. These steps are part of what officials describe as a “consumer-first” policy framework intended to curb illegal betting operations and promote responsible gaming.
On April 8, representatives from major industry bodies—including the All India Gaming Federation (AIGF), the Federation of Indian Fantasy Sports (FIFS), and the E-Gaming Federation (EGF)—held consultations with Karnataka Home Minister S. Parameshwara and IT-BT Minister Priyank Kharge to discuss the contours of the new regulatory regime.
According to sources with knowledge of the discussions, the bill will empower the government to classify online games into two broad categories: games of skill, which may operate under strict licences, and games of chance, which will be prohibited outright. A new regulatory authority will be set up to oversee licensing, monitor compliance, and enforce penalties.
The legislation also proposes stringent punitive measures. Those found engaging in or facilitating banned gambling activities could face imprisonment of up to three years and a fine of ₹5 lakh. Promoting such services via advertisements may attract up to six months of imprisonment and a fine of ₹10,000.
In addition to enforcement, the government plans to launch awareness campaigns to educate citizens on the financial and psychological risks of online gambling.
This marks a policy reversal from the state's previous attempt to ban online gaming entirely. In 2021, Karnataka passed the Karnataka Police (Amendment) Bill, which sought to prohibit all forms of online gambling, inadvertently sweeping skill-based games into the ban. The Karnataka High Court struck down key provisions of that law in February 2022, declaring them unconstitutional. The matter is now pending in the Supreme Court, which has issued notices to several gaming companies and associations.
Adding to the uncertainty, the industry is closely watching the Supreme Court’s hearing on the ₹2.5 lakh crore GST case related to online gaming, scheduled from May 5–9. The outcome could significantly impact how online gaming is taxed and regulated across the country.
With Karnataka’s fresh legislation, the spotlight is once again on the balancing act between consumer protection, state control, and the future of India’s burgeoning online gaming sector.
