Karnataka HC struck down offending provisions of the law against online gaming

A Division Bench of Chief Justice Ritu Raj Awasthi and Justice Krishna S Dixit of the Karnataka High Court struck down provisions of the Karnataka Police (Amendment) Act, 2021, which prohibit and criminalize betting and playing games of skill, including online game. 

"The provisions are ultra vires of the Constitution and struck down".

However, the Court made it clear that the order will not stand in the way of legislature bringing in a new constitutional law against gambling.

The Amendment Act bans wagering or betting games of skills including banning virtual currency and electronic transfer of funds in connection with any game of chance. The maximum punishment for violations is imprisonment for three years and a penalty of up to ₹1 lakh.

The petitions challenging the Act contended that games of skill do not amount to wagering or betting and hence, cannot be prohibited. Moreover, the State lacked legislative authority to pass the Act, which was contrary to the precedent laid down by the Top court. 

 Advocate General Prabhuling K Navadgi appearing for the State contended that the petitioner had no cause of action. Further, such games did not require great skill and in fact, predominantly a game of chance. "You are placing money over the performance of players over which you have no control whatsoever."

After hearing the parties, the bench said that the entire Act will not be struck down but a few offending provisions of the Act.