law, which
Came into effect As of late Tuesday, it bans online games involving betting and betting, and “any act or risk of money, or otherwise including games of skill on the unknown outcome of an event”.
NS Karnataka gaming ban has raised concerns that rising state regulations could affect
Emerging but thriving gaming sector in IndiaWhere foreign investors have invested millions of dollars in recent months.
On Wednesday morning, MPL’s gaming app displayed messages to users in Karnataka that read: “Sorry! The law in your state doesn’t allow you to play fantasy sports”, “fantasy games are closed” and “cash games off”. Huh”. The gaming app offers fantasy cricket and football games and allows real money bets on them. dream11, one of India’s most popular gaming apps backed by Tiger Global, was still operational, but Paytm First Games was not.
Dream11 declined to comment, while MPL and Paytm did not immediately respond.
Karnataka, home to some of the biggest tech companies in the world and India’s tech capital Bengaluru, is the latest Indian state to ban such online games. Telangana And Andra Pradesh. Tamil Nadu Such restrictions were also imposed, but its bill
was killed by the Madras High Court.
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An industry source had earlier told Reuters that these states are critical to the gaming business and account for about 20% of the companies’ total business.
All India Gaming Federation chief executive Roland Landers said the “industry will challenge this in court and take legal recourse”.
Two other industry sources told Reuters on Wednesday that gamers and some companies are planning to file a court challenge against Karnataka’s new law.
The law imposes heavy fines and jail terms on violators and has been implemented amid growing concerns that online gaming platforms such as gambling are addictive and can cause financial harm.
Aditya Kalra of Reuters in New Delhi contributed to this story.