On Tuesday, key stakeholders from the real money gaming industry met with Karnataka’s Home Minister S. Parameshwara and IT-BT Minister Priyank Kharge to discuss the development of a comprehensive regulatory framework for the sector. Representatives from the All India Gaming Federation, the Federation of Indian Fantasy Sports, and the E-Gaming Federation attended the meeting.
According to sources, officials reviewed Karnataka’s history with gaming regulations, highlighting major court rulings and comparing policy models from other states. Special attention was given to why Tamil Nadu’s regulatory approach may not be suitable for Karnataka’s specific context, particularly given that betting and gambling fall under the State List of legislative authority.
A source familiar with the discussions stated, “Recognizing the complex social and economic aspects of online gaming, the ministers proposed the formation of a dedicated committee. This committee would include representatives from gaming federations, the Home Department, and the IT-BT Department, with the goal of crafting a balanced and inclusive policy.”
The source further added, “The government emphasized the importance of collaboration and expressed its intention to work closely with industry stakeholders to define thoughtful, consensus-driven next steps.”
It should be noted that the RMG industry has taken Tamil Nadu government to court over its ‘arbitrary’ enforcement of Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025 which mandated that all minors under the age of 18 be prohibited from playing online real-money games.
In addition to Aadhaar verification, online game providers must display pop-up warnings when a player engages in continuous gameplay for more than one hour. These caution messages must appear every 30 minutes, informing players of their total playtime. The regulation also has a provision enforcing blank hours from 12 AM to 5 AM
Recently, Karnataka’s Minister for Information Technology and Biotechnology, Priyank Kharge, commented, “Illegal online gaming must be brought under control. India now has nearly 520 million gamers—the largest gaming community globally—and we must protect them. Despite the central government’s 28% GST on gaming, 23 million new gamers joined just last year.”
He also pointed out that many of these gamers are playing on servers based in countries like China and parts of Eastern Europe, saying, “This not only results in revenue losses for the exchequer, but also exposes users to increased fraud and scams. We need to establish legal parameters for the entire online and real money gaming ecosystem.”
In 2021, the Karnataka government introduced the Karnataka Police (Amendment) Bill in the legislative assembly, aiming to ban all forms of online gambling, except for lotteries and horse racing. The bill removed the distinction between games of skill and games of chance, effectively bringing skill-based gaming startups under its scope.
However, in February 2022, the Karnataka High Court struck down most provisions of the bill, declaring them unconstitutional. The state government later appealed the decision to the Supreme Court, which subsequently issued notices to skill-based gaming companies and industry bodies regarding Karnataka’s plea. The matter remains pending before the apex court.