- The Hon’ble High Court (HC) of Karnataka, issuing a writ of Mandamus in the case of All India Gaming Federation v State of Karnataka (WP 18703 of 2021), struck down the provisions of the Karnataka Police (Amendment) Bill, 2021(“Amendment”) which prohibited and criminalised online games of skill with stakes, as unconstitutional.
- The two judge Bench made it clear that the judgment will not interfere with any new legislation to be brought in consonance with the Constitution, against betting and gambling.
- A detailed copy of the judgment is yet to be uploaded.
- The State introduced provisions to amend gambling-related provisions under the erstwhile Karnataka (Police) Act, 1963 (“Karnataka Act”) in October 2021.As per the Amendment, wagering and betting in connection with a game of chance, betting on a game of skill and wagering and betting while playing online games was prohibited. The Amendment also banned virtual currency and any electronic fund transfer in connection with any game of chance.
- Following this the Amendment, several aggrieved operators challenged its constitutionality before the Hon’ble HC. They contended that the Amendment insofar as its sought to ban skill games was violative of Articles 14, 19(1)(g), 21 and 301 of the Constitution and hence, unconstitutional. The Petitioners also cited a recent order of the Madras HC in Junglee Games India PvtLtd &Anr v The State of Tamil Nadu &Orswhere the HC struck down a similar amendment which sought to prohibit online game of skill.
- In its defence, the State, citing a plethora of criminal cases registered in relation to online betting and gambling, submitted that the Amendment is a social legislation with an object to prohibit activities that are injurious to public health and order.
- It is also worthwhile to be noted that similar laws banning online rummy in the State of Kerala has also been struck down by the respective High Court.
- In another case, another gaming company has filed a writ petition before the Odisha High challenging the Odisha Prevention of Gambling Act, 1955 insofar as the Act seeks to ban online games of skill with stakes, as unconstitutional.
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