Advocate General assures Karnataka HC of no action against online gaming companies for now

Swarna Shukla –

Published On: October 29, 2021 at 14:20 IST

Advocate General Prabhuling K Navadagi orally assured the Court that no precipitative action will be taken against online gaming companies for now.

The above statement was made before a Single Bench of Justice Krishna S Dixit, which was hearing the Petition challenging the Constitutional validity of the Karnataka Police (Amendment) Act 2021, through which the State Government banned all online gambling and betting, and sentences maximum imprisonment of up to 3 years and a penalty of up to Rs. 1 Lakh for the violation of the said Act.

Senior Advocate Abhishek Manu Singhvi representing the Petitioner and relying on Supreme Court judgement in RMD Chamarbaugwalla said, “Can the legislation of Karnataka change the conditions underlined in Chamarbaugwalla. If skill is excluded from State competence, how is a State Act going to change that basis ever, by a State Act, it is not possible.

Senior Advocate Abhishek Singhvi further contended that “Prostitution is not banned, only activities around it are. But here the games of skill are banned because at the end of the game you have to exchange money on the result. You cannot stop games of skill and skill does not fall under the competence of Entry 34 List 2. However, the State of Karnataka overturns this and includes games of skill. If Entry 34 says the game of skill is not included then why the State of Karnataka includes games of skill which is contrary to Supreme Court Judgement.”

Senior Advocate Sajan Poovayya pointed to the order granted by another Bench which restrained the Police from taking any coercive steps against Bhavit Sheth and Harsh Jain, the Founders and Directors of Sports Technologies Private Limited, which promotes the Dream 11 gaming app. The Court responded that oral assurance has been given by the Advocate General that no precipitating action will be taken.

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