Experts say Karnataka’s ban on 'games of chance' may face a legal test
- The Karnataka government bans online "games of chance".
- As the IPL season has kicked in, Dream11, My11Circle, MPL Pro, Bet365, Gamezy and many others gaming platforms can come under the radar of Karnataka’s ban on online ‘game of chance’.
- The offence under the law will lead to a prison term of up to three years and fine of up to ₹ 1 lakh.
Karnataka Chief Minister Basavaraj Bommai reportedly said that the government will deal with gaming operators who run “games of chance” camouflaged as “games of skill”. Even those skill games that involve the risk of the player losing money would invite action under the law, he said.
However, there is not enough clarity on which games are considered under “game of skill” and “game of chance”. As the Indian Premier League (IPL) season has kicked in, online gaming firms like Dream11, My11Circle, MPL Pro, Bet365, Gamezy and many others can come under the radar of Karnataka’s ban on online ‘game of chance’.
So far, Punjab, Haryana, Bombay and Rajasthan High Courts have given verdict supporting online gaming platforms like Dream11 and considers it as a “game of skill”.
The Karnataka government has gone ahead with the ban despite the Supreme Court’s decision that favoured the fantasy gaming industry, calling them skill gaming instead of gambling.
The Karnataka Police (Amendment) Bill, 2021 has not been thought out by the Govt. If it intends to ban gambling/betting it should distinguish between a game of skill and a game of chance, which is not reflected in the bill.— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) September 21, 2021
Kharge mentioned Karnataka is the gaming hub with investments of ₹4,000 crore employing thousands of people. The former minister further added that more clarity is required on certain of these issues because these are buzzing businesses.
“They (online gaming platforms) are run by very young players (individuals) who have just graduated from colleges and it will kill them at this stage. Tax certainty is required as you cannot tax the entire thing, just because you feel that there is revenue which can be collected from these activities,” said Abhishek A Rastogi, partner at Khaitan & Co in a Twitter live session with Business Insider on Monday.
GST Changes: How are they going to impact the consumers? https://t.co/cnHeeLwZ8t— Business Insider India🇮🇳 (@BiIndia) September 20, 2021
In the same conversation, another panelist, Sandeep Chilana, managing partner at Chilana & Chilana Associates, said that there will be legal challenges by these online gaming entities in the court after the ban.
“In the online gaming casino sectors, and the entertainment sector everything is charged under different categories of rates. So I'm saying, gambling betting is one thing, but if you see a serious casino business, you are charging me the royalty, the licence fee to operate the casino, you are charging GST [goods and services tax] on that also, then you are asking for the 20% tax only even if it's a slot machine,” said Rastogi.
SEE ALSO: ToneTag, backed by both Amazon and Mukesh Ambani, is ready to go beyond payments using sound waves, not internet and smartphones
Marriage Story! Zee gets a white knight in Sony
IRCTC, IndiaMART, Cummins India and others have been under pressure in the last 5 days but still worth buying
- India’s techies are leaving IT firms in hordes — Here’s why
- Elon Musk’s puppy, a new strategy to burn tokens, and altcoins playing catch up — the perfect storm for cryptocurrency Shiba Inu to skyrocket
- A renowned female crime novelist who won a million-euro prize in Spain turned out to be three middle-aged men
- Delhi records 720 dengue cases so far and one death in 2021
- Your phone may replace your metro card soon — DMRC is planning to introduce NFC payments at entry gates
- Crypto hackers now target iPhone users via dating apps like Bumble, Tinder
- HP Envy 14 review: A solid no-frills laptop for productivity and occasional gaming
- How to edit PDF online using your browser