Karnataka HC: Ban on Online Gaming Unconstitutional

On February 14, 2022, Karnataka High Court struck down provisions of Karnataka Police (Amendment) Act, 2021, that had banned online games.

Key Facts

• The division bench was headed by Chief Justice Ritu Raj Awasthi and Justice Krishna S. Dixit.
• According to the bench, ‘Karnataka Act number 28/2021 to the extent the provisions ultra vires the constitution, however not the entire Act.
• This judgment was interpreted for preventing an appropriate legislation concerning the subject like betting and gambling in line with the provisions of constitution.
• A writ of mandamus was issued to restrain the respondents from interfering with online gaming business and allied activities of the petitioners.

Karnataka Police (Amendment) Bill, 2021

• The law includes all forms of betting or wagering in connection with any game of chance, except horse racing. However, this law was opposed by online gaming companies, stating that this policy would affect the prospectus of Karnataka, which is emerging as online gaming companies’ hub.
• The Act banned all formats of online games including wagering, betting and gambling of all nature in the state.
• Under it, online gaming was considered a non-bailable offence. It provides for a fine of Rs 1 lakh and imprisonment of up to three years.
• Apart from banning games of skills, government categorised online games using electronic means, virtual currency and electronic transfer of funds associated with any game as gambling.