corporate law
The Confederation of All India Traders has addressed an important matter regarding the proposed amendments to the Karnataka Police Act, 1963, aiming to prohibit online gambling and skill-based games. This communication emphasizes the need for a supportive legal framework that nurtures the Indian gaming industry while safeguarding users.
The Government of Karnataka has initiated amendments to ban online gambling through the Karnataka Police (Amendment) Bill, 2021. We commend this step towards protecting players and fostering a safe gaming environment. Such regulations can create a healthier ecosystem for the online skill gaming sector to flourish, enabling citizens to engage with legal and responsible platforms.
Prime Minister Modi’s commitment to the Indian gaming sector is noteworthy. His vision links the gaming industry to the Atmanirbhar Bharat initiative, encouraging local solutions and the development of indigenous games. There is a pressing need to design games that resonate with Indian culture, moving away from those that promote violence and foreign influence.
It is crucial to provide Indian game developers with a global stage to showcase their talents. The Prime Minister advocates for the promotion of Indian-made games, emphasizing the importance of aligning with the spirit of Ek Bharat, Shreshtha Bharat. Government support in this direction will help establish Indian values in gaming while diminishing reliance on foreign platforms.
Since the introduction of the Karnataka Police (Amendment) Bill, concerns have been raised by various stakeholders in the gaming industry. Multiple submissions have highlighted that the bill not only threatens job security but could also set back the Indian gaming sector significantly.
The consequences could be detrimental, leading to significant job losses, particularly in Bengaluru, which hosts over 90 gaming companies employing more than 4,000 individuals.
The Indian gaming startup ecosystem represents a significant sector of innovation and creativity. Various homegrown startups have successfully expanded internationally, promoting India's technological prowess. However, restrictive legislation like the proposed bill threatens to inhibit the growth and innovation of these companies, while inadvertently benefiting foreign competitors.
The bill fails to differentiate between games of skill and chance. While games of chance warrant prohibition, including skill-based games contradicts established legal precedents upheld by the Supreme Court and Karnataka High Court, thereby jeopardizing the vibrant Indian gaming industry.
The proposed legislation may inadvertently foster illegal online gambling through offshore betting apps. Numerous individuals have suffered significant financial losses due to these unregulated platforms. A notable case in August 2020 involved an illegal gambling syndicate linked to a Chinese firm, resulting in transactions amounting to INR 1.10 crores.
By establishing barriers for legal Indian skill games, the bill could drive users towards harmful offshore platforms, posing significant risks to their welfare.
Karnataka Govt was urged to reconsider the provisions of the Karnataka Police (Amendment) Bill, 2021, keeping in mind the interests of Indian gaming companies and developers. Establishing a robust regulatory framework for online skill games is vital for enhancing India’s leadership in this emerging sector and further solidifying Karnataka’s status as a startup hub.