Karnataka HC strikes down ban on online gaming

The High Court of Karnataka on February 14 declared as unconstitutional certain provisions of the Karnataka Police (Amendment) Act, 2021, which prohibited and criminalised the activities of offering and playing online games, by risking money or otherwise.

Violation of Article 14

  • On September 21, 2021, Karnataka state legislature had passed a legislation to amend the Karnataka Police Act,1963 to impose a complete ban on gambling in the state.
  • The petitioners gaming federation and companies argued that as per the law laid down by the Supreme Court in 1957, competitive games of skill are business activities protected under Article 19 (1) (g) of the Constitution.
  • The provisions of Sections 2, 3, 6, 8 & 9 of the Karnataka Police (Amendment) Act 2021 were declared to be ultra vires of the Constitution of India in their entirety and accordingly were struck down.
  • The Bench also restrained the government from interfering with the online gaming business and allied activities of the petitioners while making it clear that nothing in this judgment shall be construed to prevent an appropriate legislation being brought about ‘Betting & gambling’ in accordance with provisions of the Constitution.
  • The High Court bench said the impugned legislative action that has clamped an absolute embargo on all games of skill defies the principle of proportionality and is far excessive in nature and therefore violates Article 14 of the Constitution on the ground of manifest arbitrariness.

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