Karnataka Government’s Bill banning online games “non-progressive”: IAMAI

IAMAI Karnataka Bill

The Government of Karnataka has recently passed a bill to deter online gambling. The Internet and Mobile Association (IAMAI) is of the view that the bill would hurt the State’s future prospects of growing as a startup hub.

Internet and Mobile Association of India (IAMAI) today said that the Karnataka Police Act (Amendment) Bill, tabled in the State Legislative Assembly, will provide a conducive environment for the online skill gaming industry. However, the bill introduced in the assembly appears to have been drafted without considering the various legal and constitutional positions by including a wide definition of ‘gaming’ in amendments against various Supreme Court and High Court judgments.


The bill has been introduced in the backdrop of a PIL filed in Karnataka High Court to ban online gambling. After the Cabinet’s approval of the bill, the law minister, JC Madhuswamy, informed the media that the bill is to ban online gambling and games of chance in the state.


IAMAI is of the view that the bill may hurt Karnataka’s position as the country’s startup hub and lead to the loss of jobs and revenue for the state. There are 92 gaming companies registered in Bengaluru which employ over 4,000 people. In the past three years, international investors have invested around INR 3,000 crores in gaming and animation startups in the state.

Also read: Proposed amendments to -commerce Consumer Protection Rules 2020 is a disincentive to consumers: IAMAI

Karnataka was one of the first states to come up with an AVGC (Animation, Visual Effects, Gaming, and Comics) policy recognizing the immense potential the sector holds for the digital economy.

IAMAI is hopeful that the state government will continue to take a progressive stand and relook at the bill to bring it in line with the Supreme Court and various High Court’s judgments and help create a vibrant, inclusive, globally competitive, and sustainable start-up ecosystem in Karnataka. Legislative actions such as this, may create a cloud of confusion and create regulatory uncertainty, which may unintentionally result in investors recalibrating their investments in the state and many existing companies may consider shifting base from the state.

In view of the above, IAMAI requests the Government of Karnataka to take a progressive view and ensure that legitimate online gaming companies are protected under Article 19(1)(g) and Article 14 of the Constitution of India continue to operate in the State.

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