Online gaming | Industry bodies seek clarity: Report
The amendment to section 78(1)(a)(vi) and (vii) of the Act includes games of skill, within the ambit of wagering, has created uncertainty .
To protect the growth of gaming companies and impact the reputation as a hub for innovations and startups in Karnataka, Naascom and IndiaTech.org have sought for clarity on several clauses in the Karnataka Police (Amendment) Act, 2021 that bans gaming through mobile apps, internet and enhances punishment for online gaming, according to a report in The Economic Times.
Game of skill vs game of chance
According to Naascom, the Act in its current form has obliterated the distinction between game of skill and game of chance. The element of chance cannot be removed in a game of skill, but it is primarily dependent on knowledge, training and a player’s adroitness. It added that the law has settled that competitions requiring substantial skill form a distinct category from a game of chance and come under business activities protected under Article 19(1)(g).
The amendment to section 78(1)(a)(vi) and (vii) of the Act includes games of skill, within the ambit of wagering, has created uncertainty in the gaming industry as games like online crossword, chess or sudoku may be considered as wagering as it requires registration fees and are dependent on the skills of players, Naascom said.
Representing the founders of Indian startups and investors, IndiaTech.org has requested the state government to issue necessary clarifications and carve out certain provisions applicability, either through new rules or guidelines.
The industry body also said that though the primary intent of the government is aimed at online gaming and betting, it is equally important for the government to start engaging with industry to remove confusion, that can be erroneously interpreted to apply to all legitimate gaming business.