The Karnataka government on Wednesday announced that it will be bringing a new law aimed at regulating online betting and gaming.
Home Minister G Parameshwara said a committee of senior officials and industry representatives has been constituted and it has been given a month’s time to submit a draft of the proposed bill.
“I chaired a meeting regarding online betting and gambling yesterday along with the IT Minister. Representatives from the industry were called. There is nothing to regulate them so far. They have agreed to the introduction of a licence system and a regulation as per law,” he told reporters here.
The state government held a high-level meeting to discuss a legal framework for regulating online gaming.
IT-BT Minister Priyank Kharge noted that 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 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 the state home minister, 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 USD 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,” he said.
The minister also raised concerns over the growing underground market of offshore gambling and illegal betting. “Alongside the legitimate sector, there is a parallel underground market that is expanding rapidly, posing risks such as predatory money collection practices, dubious shell companies, financial fraud, data breaches, and cybercrimes,” he said.
Kharge also 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.
Despite the existing ban on online betting and gaming apps, many of these platforms continue to flourish-spreading rapidly even into rural parts of Karnataka. This unchecked growth has raised serious concerns about their impact on society, prompting the state government to consider introducing stricter regulations