Karnataka HC strikes down state law banning online gambling

The Karnataka High Court on Monday struck down provisions of the Karnataka Police (Amendment) Act, 2021 terming them as unconstitutional. The provision of the Act had prohibited and criminalised betting on and playing games of skill, including online games. The judgement is a big win for lead petitioner All India Gaming Federation.

"The writ petitions succeed. The provisions are ultra vires of the Constitution and struck down," said a Division Bench of Chief Justice Ritu Raj Awasthi and Justice Krishna S Dixit pronounced the judgment, according to Bar and Bench. 

The court has made it clear that the entire Act has not been struck but only the provisions that were unconstitutional. 

The Bench also made it clear that this judgement does not stop the legislature from introducing any new law against gambling that is constitutional. 

Last year on September 21, the Karnataka Assembly passed legislation to amend the Karnataka Police Act, 1963. The new law made all forms of gambling a cognisable and non-bailable offence. This included online gambling. 

According to the law, all forms of wagering or betting, including in the form of tokens valued in terms of money paid before or after issue of it, or electronic means and virtual currency, electronic transfer of funds in connection with any game of chance, were classified as gambling.

The law also made ownership of gambling centres/ platforms an offence that could lead to imprisonment from 1-3 years and a fine ranging from Rs 1,000-Rs 1 lakh.

Many gaming applications like Mobile Premier league, Paytm First Games have blocked access to users in the state following the enforcement of the new law. 

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