• Legality of Online Gambling and Advertisements in Karnataka

I see a lot of advertisements for online gambling platforms like Dafabet. Is it legal to play on these platforms in Karnataka? I want to understand the current legal status and if there are any risks involved in participating, especially given the high visibility of these ads
Asked 1 year ago in Taxation

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4 Answers

The Karnataka Police Act, 1963, was amended by the Karnataka Police (Amendment) Act, 2021.

According to the aforementioned Act, gambling of any form, including online gaming, is a non-bailable offense that can be prosecuted.

 In essence, if a game was played for a reward or money, all games, even skill-based ones, would be forbidden.

The state governments of Andhra Pradesh and Telangana have outlawed online games, including skill-based games that are also played for money, in addition to Karnataka and Tamil Nadu.

While the aforementioned jurisdictions have outlawed even skill-based games if they are played for cash, there are a number of states that have authorized them and have effective online gambling regulations in place.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

betting or gambling is illegal in india .According to the Public Gambling Act (1867), all kinds of gambling in India are illegal.

2) Recently, the Karnataka High Court delivered a judgement striking down major portions of the Karnataka Police (Amendment) Act, 2021 which banned online gambling and skill-based gaming platforms.

 

3) Being manifestly arbitrary and irrational insofar as it did not distinguish between two different categories of games, i.e. games of skill and chance.

 

4)There are specific exemptions for games of skill under most State Gaming Laws and courts have also recognised offering of skill games as a legitimate business activity that is constitutionally protected.  No licence is required for offering skill games in most states in India

 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Online gambling in India are regulated under the IT Act, 2000 , and this act prohibits online gambling activities and prescribes a punishment for persons indulging in such activities, and would be fined Indian Rupees 100,000 or would receive imprisonment of up to 5 years.


- However, in the matter of the Indian Poker Association versus State of Karnataka, the Karnataka High Court on 8.10.2013 held that playing skill games like poker in recreational club is permitted and no license is required for the same.

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Dear client,

The legal status of online gambling in Karnataka has seen significant changes recently. Here’s an overview of the current situation:

Legal Status

 

  • Ban on Online Gambling:

 


  • In September 2021, Karnataka passed the Karnataka Police (Amendment) Act, 2021, which banned all forms of online gambling involving money1. This law made it illegal to play on online gambling sites, and violators could face imprisonment for up to three years or a fine of up to ₹1 lakh.

 

  • High Court Ruling:

 

  • In February 2022, the Karnataka High Court struck down the provisions of the Karnataka Police (Amendment) Act, 2021, that prohibited and criminalized online gaming, including games of skill2. The court ruled that these provisions were unconstitutional, providing relief to online gaming platforms and players.

Current Scenario

  • Regulatory Grey Area:
    • Despite the High Court ruling, the legal status of online gambling remains in a regulatory grey area.There is no comprehensive legislation specifically addressing the legality of online gambling in Karnataka.
    •  This means that while the specific ban was struck down, there is still ambiguity regarding the legality of online gambling platforms like Dafabet.

Risks Involved

 

  • Legal Uncertainty:

 


  • Given the regulatory grey area, participating in online gambling can still pose legal risks. Future legislation or regulatory actions could impact the legality of these platforms.

 

  • Financial Risks:

 


  • Online gambling involves significant financial risks, including the potential for addiction and financial loss. It’s important to gamble responsibly and be aware of the risks involved.

 

  • Consumer Protection:

 

  • Ensure that any platform you use is reputable and has measures in place for consumer protection. Be cautious of fraudulent or unregulated platforms.

Recommendations

  • Stay Informed:
    • Keep up to date with any changes in the legal landscape regarding online gambling in Karnataka. Legal developments can impact the status and regulation of these platforms.

  • Consult Legal Advice:
    • If you are considering participating in online gambling, it may be wise to consult with a legal expert to understand the potential risks and implications.

Thank you. Should you require any further clarification, please do not hesitate to contact us.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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