The Karnataka government will establish new legislation for online gambling and betting platforms which will fight fraudulent activities and strengthen the proper gaming industry according to a cabinet member.
A committee including senior state officials and industry participants was established to create the proposed legislation according to home minister G. Parameshwara. The committee received one month for completing the draft work.
The home minister together with the IT minister chaired a meeting to discuss the control of online betting and gambling. The industry advisors were summoned at this meeting. Presently these operations remain unregulated. The representatives accepted both getting licensed under law and accepting legal regulation according to his statement.
The government intends to create a new law using the regulatory framework established by Chhattisgarh after the draft is finalized by the committee according to Parameshwara.
Engineer Priyank Kharge explained that the pending legislation seeks to ban chance-based gaming activities simultaneously with supporting skill-based innovation and gaming expansion for online entertainment.
The minister of electronics noted Karnataka serves as a critical sector in the nation’s online gaming market because “The legitimate online skill-based gaming industry in India is a sunrise sector worth USD 4 billion” which generates ₹12,000 crore in taxes and establishes over 1.5 lakh jobs. The state of Karnataka stands as the leader with 25% dominance of this market where annual taxes amount to ₹1,350 crore annually.
The minister expressed worries about the increasing illegal along with offshore betting activities despite his support for legal gambling.
The minister pointed out how the expanding black market within gaming operates alongside legal operations as an expanding threat area because it creates risky conditions which include predatory money collection practices together with dubious shell companies and financial fraud and data breaches and cybercrimes.
During his recent meetings Kharge received input from representatives who served as members of the E-Gaming Federation (EGF) and the All-India Gaming Federation (AIGF) and the Federation of Indian Fantasy Sports (FIFS). The gaming industry’s new legislation will be influenced by the ‘Code of Ethics’ created through joint work between these organizations.
The state experiences continuous utilization of banned online betting and gaming apps that originate from locations beyond its borders. The first step towards banning anything illegal must be implemented.
We will direct our efforts to finding effective regulatory methods when any gaming platform becomes authorized by the law. The existing laws still exist but their enforcement has not been effective. The state authorities have met to establish methods which safeguard citizens against risky Internet platforms according to Kharge.
The online skill-based gaming industry operates legally in India as a rising sector which generates USD 4 billion while paying Rs 12,000 crore in taxes through job creation of over 1.5 lakh positions. Karnataka represents 25 percent of the market making Rs 1,350 crore worth of taxable revenue per year thus becoming a significant industry center according to Kharge.
The minister expressed worry about the increasing unregulated offshore gambling and illegal betting operations that are growing throughout India. He warned that the rapid expansion of the illegitimate underground betting sector produces threats because predatory money collection systems, problematic shell companies and financial frauds and data breaches and cybercrimes continue to emerge.
Kharge discussed with E-Gaming Federation (EGF) representatives and All India Gaming Federation (AIGF) members and Federation of Indian Fantasy Sports (FIFS) leaders about business ethics for the industry.
Internet betting platforms operate illegally in Karnataka even though legislation bans their operations while expanding into every corner of the state including rural areas. Uncontrolled expansion of these platforms leads the government to assess implementing additional regulatory measures.
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