The Karnataka Cabinet on Saturday, September 4, decided to impose a ban on online gambling or betting. However, lottery and horse racing have not been prohibited. "We are amending the Karnataka Police Act (1963), with an intention to put an end to online gambling, on the basis of the High Court directions. The Cabinet has approved the amendments, it will be placed before the assembly in the upcoming Assembly session," state Law and Parliamentary Affairs Minister JC Madhuswamy told reporters after the Cabinet meeting in Bengaluru.
"The draft bill defines online games as, 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. It also includes electronic transfer of currency in connection with any game of chance," the Minister said. However, he said that this does not include lotteries or wagering on horse races done on any race course within or outside the state. The amendment to this effect will be tabled in the upcoming session of the legislature starting September 13.
The state government in July had informed the High Court, hearing a petition seeking a ban on all forms of online betting and gambling, that it had drafted a Bill in the same regard. The HC was hearing a public interest litigation filed by DR Sharada, a resident of Davanagere. The litigant had sought a direction from the HC banning all forms of online gambling until the state government created regulatory mechanisms.
Last November, Tamil Nadu had promulgated an ordinance banning online gambling, and earlier this year, Kerala had imposed a ban on online rummy games. Many industry players have advocated for a pan-India uniform regulation to prevent loss of potential tax revenues which are currently going to foreign countries.