K'taka IT Minister Priyank Kharge sounds alarm as Indian gamers flee to foreign servers
The minister emphasised that games of skill — such as Sudoku, chess, and fantasy sports — should not involve betting, and called for a coordinated effort between the central and state governments to create a robust legal framework.
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Karnataka’s Minister for IT, Biotechnology, and Science & Technology, Priyank Kharge, has raised alarm over a growing migration of Indian online gamers to foreign servers in the wake of steep taxation and weak enforcement, warning that the trend is undermining both state oversight and consumer protection.
Speaking during a Legislative Assembly discussion on the online gaming menace, Kharge said India’s gaming landscape is massive — nearly 590 million gamers, of which about 140 million are paying players. But he cautioned that the government’s recent 28% GST levy on the sector, imposed through the GST Council, has triggered an exodus.
“Our people have stopped playing on our servers. They are now playing on Eastern European, South American, and Chinese servers,” Kharge told the House. “Earlier, at least if we had controlled it, we would know who is running it and where they are playing. Then the police could go and take action. Now, their first advertisement is ‘No GST, ₹1 lakh in your account, no KYC.’ And our players are shifting there.”
Kharge warned that once players move to such unregulated overseas platforms, they become vulnerable to fraud with no legal recourse. “If they are cheated, no one can do anything because we don’t know who they are or where they are,” he said.
The minister emphasised that games of skill — such as Sudoku, chess, and fantasy sports — should not involve betting, and called for a coordinated effort between the central and state governments to create a robust legal framework. “If both levels of government unite and do this, regulation is possible. Otherwise, it will always be difficult,” he noted.
Kharge’s intervention came amid a larger debate initiated by BJP legislator S. Suresh Kumar, who pressed the government on delays in lifting the stay on the 2021 amendment to the Karnataka Police Act. That amendment had sought to bring all online wagering and betting, including games of chance, under state regulation, but was struck down by the Karnataka High Court. The Congress-led government has since appealed to the Supreme Court.
Home Minister G. Parameshwara informed the Assembly that a committee under Pronab Mohanty is expected to submit recommendations by September, after which the state will pursue both new legislation and the removal of the court stay.
Former Home Minister Araga Jnanendra recounted the intense lobbying and pressure faced when the original amendment was introduced, while also urging the government to appoint a top advocate to fight the case in the Supreme Court.
Kharge’s remarks stood out for highlighting how the issue is no longer just about addiction or domestic regulation but also about digital jurisdiction and the risk of losing control over a massive industry to offshore operators. His warning underscored that without a unified legal and enforcement approach, India risks losing not just tax revenue but also the ability to protect its own citizens from predatory gaming platforms.
