Bengaluru: The Karnataka High Court on Monday quashed the provision of the Karnataka Police (Amendment) Act 2021, which prohibits and criminalize the online games .

The State government has recently brought an amendment which empower the Karnataka Police to prevent all types of online gambling. The government will amend Karnataka Police Act; the bill will be introduced in the coming session.

A Division Bench of Chief Justice Ritu Raj Awasthi and Justice Krishna S Dixit pronounced the judgment struck down the provisions of the act, which prohibit and criminalise betting on and playing games of skill, including online games

The division bench while allowing the petitions observed that the provisions are ultra vires of the Constitution and struck down," the Court said. The court further observed that the entire Act is not struck down but only the offending provisions.

The Bench made it clear that the judgment will not stand in the way of legislature bringing in new law in consonance with the Constitution against gambling.

The Amendment Act  was enacted on October 5, 2021 bans wagering or betting, including in the form of tokens valued in terms of money paid before or after the issue of the same. It also ban virtual currency and electronic transfer of funds in connection with any game of chance.

The maximum punishment for violations under the Amendment Act is imprisonment for three years and a penalty upto ₹1 lakh.

The petitions challenging the Act claimed that games of skill, irrespective of whether they involve the risk of losing money, do not amount to wagering or betting and thus, cannot be prohibited, Bar and Bench reported.

It was argued that the State lacked legislative authority to pass the Act, which was contrary to precedent laid down by the apex court and was violative of Articles 14, 19(1)(g), 21 and 301 of the Constitution.

“Constitutional Courts have repeatedly held that games of skill (involving risking of money or otherwise) do not amount to wagering or betting, and therefore are protected under Article 19 of the Constitution,” one of the pleas stated.

On the other hand, the State government through Advocate General Prabhuling K Navadgi contended that the petitioner had no cause of action had arisen as no steps were taken against the petitioners. In absence of any proceedings against them, such a petition could not lie.

Navadgi also argued that such game did not require great skill and was in fact, predominantly a game of chance.

“You are placing money over performance of players over which you have no role or control whatsoever. Once you establish this, how is it a game of skill?” he had asked during the hearing.

In the amendment bill, profit or gain occurring in two places, and the word otherwise shall be inserted. Gaming includes online games which involve in all forms, tokens, games, betting, money paid before or after, electronic transfer of funds. Online gaming through computers, mobile app, cyberspace, the internet will be banned in the state.