Karnataka notifies law banning online gambling

Amendments to the Karnataka Police Act, which bans online gambling and betting was notified by the state government on Tuesday.

The law which was passed in both the houses of Karnataka legislature in the recently concluded monsoon session, provides for a maximum imprisonment of three years and fines of upto Rs 1 lakh for violations.

The law has raised serious concerns in the gaming industry, and is likely to be challenged in courts, as a similar law enacted by neighbouring Tamil Nadu was struck down by courts recently.

Read | Karnataka govt rolls the dice: Game over for online betting?

Amendments to the Act has made online gambling a cognisable and non-bailable offence. The newly enacted provisions covered all forms of betting in "games of chance" and has exempted lotteries and horse racing.

As per the law, "games means and includes online games, involving all forms of wagering or betting, including in the form of tokens valued in terms of the money paid before or after the issue of it, or electronic means and virtual currency, electronic transfer of funds in connection with any game of chance."

The legislation was proposed during the tenure of current Chief Minister Basavaraj Bommai as Home Minister, following cases of suicide due to addiction and losses suffered by online betting.

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