Bangalore: online games involving bets banned by the state


Mobile Premier League, funded by Sequoia Capital-fund, was one of the first gaming startups to send messages to its users that state law does not allow access. | Photo credit: iStock images

Highlights

  • Online gambling is an offense without bail with fines of up to Rs. 1 lakh and imprisonment for up to 3 years.
  • The government has also banned games involving the use of virtual currency.
  • Games using electronic means and the electronic transfer of funds in connection with any game of chance are also prohibited.

Bangalore: The government of Karnataka has informed the Karnataka police of the 2021 (amendment) law, banning all online gaming formats involving betting, wagering and gambling. Online games involving gambling are increasing day by day. People get addicted to these games and therefore lose money and sometimes even their life.

Shortly after the government’s gambling ban notification, several games began sending messages to users that state law did not allow such games.

The government has notified that anyone involved in such games will be subject to a heavy fine under the amended law. Online gambling is an offense without bond with fines of up to Rs 1 lakh and jail time of up to 3 years.

Along with the ban on online gambling, the government has also banned games involving the use of virtual currency. Games using electronic means and the electronic transfer of funds in connection with any game of chance are also prohibited.

Some gaming companies, after the formal notice, decided to take legal action. The law was passed by both houses of the legislature during the monsoon session last month.

Mobile Premier League, funded by Sequoia Capital-fund, was among the first gaming startups to send messages to its users that state law does not allow access.

The amended law intensified the growing concerns of the gaming industry. Many foreign investors have invested in the industry because it is showing significant growth.

Dream 11, which was a fledgling start-up but then grew into a large corporation and is now one of India’s most popular gaming apps, has not received any notifications regarding the ban. However, Paytm First Games received it.


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