India's Karnataka may ban online gambling, allow only skill-based games  

Neha Soni
Written by Neha Soni

India’s Karnataka, a state known for its technological innovations and progressive policies, has announced plans to introduce a legal framework that will ban gambling based on chance, while allowing skill-based games, according to local media.

This framework has been influenced by the success of Chhattisgarh’s gambling regulation, which offers a model that draws a clear distinction between games of skill and games of chance. Karnataka IT and BT Minister Priyank Kharge recently outlined the government’s plans, stating that they are in the process of developing a regulatory model for the gaming industry.

The aim for regulate gambling, is to protect consumers from fraudulent gaming sites and ensuring transparency and innovation. By establishing clear guidelines, Karnataka hopes to provide a regulated environment that promotes responsible gaming while minimising risks. Discussions are currently ongoing with the Law and Home departments to define the difference between games of chance and games of skill.

Protest demanding ban on online gambling

This comes weeks after over 800 college students in Karnataka’s Bengaluru held a protest march demanding a complete ban on online gambling. The protest, covering around four kilometers from Kengeri Satellite Town to Hoysala Circle, saw participation from Yeshwantpur MLA S.T. Somashekar. Holding placards and chanting slogans, the protesters called on the government to take immediate action against online gambling.

The students said that many families have gone bankrupt and youth are turning to anti-social activities due to gambling losses. They stressed on the negative impact of online gambling on young people, including academic failure, mental health issues and debt traps. The students emphasised that easy access to gambling apps through smartphones has worsened the situation and urged the government to impose a permanent ban.

The protest came just a day after three members of a family ended their lives, allegedly after losing money in online gambling in the state’s Mysuru district. The deceased were identified as Josh Anthony, his brother Joby Anthony, and Joby’s wife Sharmila, also known as Swathi.

Uniform regulatory framework?

Several Indian states have attempted to impose their own regulations or bans on online gaming. Karnataka sought to ban online gaming in 2021 but was unsuccessful. In 2023, it announced plans to regulate the industry instead. The new approach aims to address past legal issues and support the industry while prioritising consumer safety. The recent move comes as India lacks a uniform central regulation for online gaming. Therefore, each state has its own way of dealing gambling, which range from regulation to complete ban.

However, the Indian government plans to set up a committee comprising officials from the home ministry, legal and policy experts, and gaming industry representatives to explore a unified regulatory framework for online gaming, according to a local media, Mint, report. The move aims to replace the current patchwork of state-specific laws governing the sector.

The world’s biggest iGaming community brings you SiGMA’s Top 10 news countdown. Our weekly newsletter brings you all the latest from the world’s iGaming authority. Subscribe  to stay ahead and unlock subscriber-only offers.