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Karnataka Plans Regulatory Framework for Online Real Money Gaming Sector

Karnataka is set to introduce a comprehensive regulatory framework for the online real money gaming (RMG) sector by the end of the year. A central feature of this policy will be a whitelist mechanism to identify and authorise legitimate operators.

According to a report, the framework will encompass provisions such as age restrictions, grievance redressal systems, and player support services. Some Indian state governments have already attempted to incorporate aspects such as Aadhaar card verification, two-factor authentication, and even a nighttime ban on players and gaming.

This move forms part of a broader effort to curb illegal betting and gambling platforms. Earlier, a Karnataka Minister had said that the southern state should take centre stage on the international gaming stage.

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ALSO READ: Now Play Online Poker From Karnataka On MPL Poker

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Sources have indicated that Karnataka plans to make a legal distinction between games of skill and gambling. However, there remains uncertainty regarding the treatment of offshore betting platforms. If implemented successfully, Karnataka will become the first Indian state to introduce a whitelist for real money gaming (RMG) operators.

This move could pave the way for other states to formulate their own structured regulatory frameworks. This initiative marks a notable shift in Karnataka’s approach. In 2021, the state passed the Karnataka Police (Amendment) Bill, which banned online gambling, with exceptions only for horse racing and lotteries.

The Indian Government and the real money gaming industry have had a complex relationship, with the latter aspect of GST often being a point of contention between the two.

The legislation blurred the distinction between games of skill and games of chance, inadvertently bringing skill-based gaming start-ups under its ambit. In 2022, the Karnataka High Court struck down key provisions of the bill, deeming them unconstitutional. It remains to be seen what repercussions these regulatory frameworks will have on the poker and real money gaming industry.

Gutshot Magazine has been monitoring federal decisions that could have repercussions for the industry. We also provide information about poker tournament itineraries, winners’ lists and interviews with some of the biggest names in the industry. To know this and more, keep reading our articles!

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