In response to the rapid growth of online gaming and betting in India, the state of Karnataka has proposed the formation of a Regulatory Authority for Online Betting and Gaming. This marks a major step toward bringing structure, transparency, and oversight to an industry that has been largely unregulated across the country.

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🎯 Key Objectives of the Proposal

As part of the proposed amendments to the Karnataka Police Act 2025, the new authority would be responsible for:

• Licensing and regulating online betting and gaming platforms (including skill-based games)
• Setting safety standards to protect consumers and players
• Monitoring financial activity to prevent fraud and money laundering
• Collaborating with cybercrime units to block illegal platforms

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⚖️ Why Is This Authority Needed?

Currently, India lacks a uniform legal framework for online betting and gaming. Many apps operate in a legal grey area and are often promoted through:

• Cash-based gaming platforms (like rummy or teen patti)
• Unlicensed cricket and football betting apps
• Misleading ads via Telegram, YouTube, and social media

The Karnataka government has stated:

“Only through a centralized regulatory authority can we protect users and build a responsible, revenue-generating industry.”

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💬 Industry Reactions

Major gaming companies like Dream11, MPL, and Games24x7 have welcomed the move, viewing it as an opportunity to operate transparently and at scale.

Smaller startups, however, are concerned about licensing fees and bureaucratic hurdles. Yet, if the policy is designed well, it could help eliminate low-quality and fraudulent operators from the market.

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🔐 Expected Rules for Platforms

According to leaked draft documents, platforms seeking legal operation in Karnataka will be required to:

• Register as a legal entity
• Implement KYC (Know Your Customer) verification
• Submit regular financial reports
• Ensure data privacy and player protections
• Restrict access to users aged 18 and above

Violations could lead to fines up to ₹5 million (₹50 lakh) or permanent bans.

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🌐 Impact on Players and Betting Agents

If passed, the proposal could benefit both players and affiliate agents:

• Players would gain access to safer, government-regulated platforms
• Reduced risk of fraud, loss, or data theft
• Better customer service and transparency
• Affiliate agents could register legally, pay minimal taxes, and earn commissions from trusted platforms without fear of legal repercussions

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🗓️ Timeline and Implementation

• Free legislative draft will be submitted in Q4 of 2025
• If passed, the Karnataka Betting Regulation Authority could launch by early 2026
• This framework could serve as a model for other states like Maharashtra, Tamil Nadu, and Telangana

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Conclusion

Karnataka’s proposal is a timely intervention that could bring order and sustainability to a multi-billion-dollar industry. If implemented effectively, it will mark a new era of transparency and accountability in India’s online gaming and betting sector.